EU launches twin competition probe into Apple
The European Commission has launched two separate antitrust investigations into US tech giant Apple, Brussels announced on Tuesday.
Apple Inc.
$169.30
13:09 26/04/24
Dow Jones I.A.
38,239.66
04:30 15/10/20
Nasdaq 100
17,718.30
12:15 26/04/24
The first will assess whether Apple’s rules regarding the distribution of apps via its App Store violate European Union competition requirements.
In particular, the probe will focus on the mandatory use of Apple’s proprietary in-app purchase system, and on restrictions put on developers to let iPhone and iPad users know about alternative purchasing options.
A preliminary probe was launched following a complaint, filed in March 2019, by music streaming service Spotify. The Commission said that investigation had thrown up concerns Apple’s restrictions “may distort competition” for music streaming services on Apple devices. Another complaint was filed in March 2020 by an audio and e-book distributor raising similar concerns.
The second probe will focus on Apple Pay, Apple's proprietary mobile payment system. It will assess the terms, conditions and other measures for integrating Apple Pay in merchant apps and websites on iPhones and iPads; Apple’s limitation of access to the near field communication functionality on iPhones for in-store payments; and alleged refusals of access to Apple Pay.
Margrethe Vestager, the Commission’s executive vice-president in charge of competition policy, said: “Mobile applications have fundamentally change the way we access content.
“It appears that Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices. We need to ensure that Apple’s rules do not distort competition in markets it is competing with other app developers, for example, with its music streaming service Apple Music or with Apple Books.”
Commenting on the second probe, she noted: “It appears that Apple sets the conditions on how Apple Pay should be used in merchants’ apps and websites. It also reserves the ‘tap and go’ functionality of iPhones to Apple. It is important that Apple’s measures do not deny consumers the befits of new payment technologies, including better choice, quality, innovation and competitive prices.”
Apple was not immediately available for comment. However, it told the Financial Times: “It’s disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else.”