The European Commission announced today that it has opened two formal antitrust investigations into Apple’s App Store and its mobile payment system Apple Pay.
The first investigation focuses on whether Apple's requirements for app developers to distribute apps via the App Store violate EU competition rules. In particular, the in-app purchase system will be analyzed. The investigation will also focus on the restrictions on the options for developers to offer their iPhone and iPad users purchase options outside of the App Store. The opening of the investigation follows two complaints filed by Spotify and the e-book distributor Kobo. The press release:
Margrethe Vestager, Executive Vice-President in charge of competition policy, said: "Mobile applications have fundamentally changed the way we access content. Apple sets the rules for distributing apps to iPhone and iPad users. It seems that Apple has been given a 'gatekeeper' role when it comes to distributing apps and content to users of Apple's popular devices. We need to ensure that Apple's rules do not distort competition in markets where Apple competes with other app developers, for example with its music streaming service Apple Music or with Apple Books. I have therefore decided to take a close look at Apple's App Store rules and their compliance with EU competition rules."
Apple Pay is also in the sights of the EU Commission
In addition to the App Store, the mobile payment service Apple Pay is also set to be closely examined. According to the report, the European Commission will investigate Apple Pay due to concerns about its terms and conditions. In addition, the European Commission notes that Apple Pay is the only mobile payment solution on an Apple device with NFC technology. In response to the announcements, an Apple spokesperson issued the following statement:
We designed the App Store with two goals in mind: to be a safe and trusted place for customers to discover and download apps, and a great business opportunity for entrepreneurs and developers.
We are deeply proud of the countless developers who have innovated and achieved success through our platform. And as we have grown together, we have continued to deliver innovative new services – like Apple Pay – that provide the best customer experience while meeting industry-leading standards for privacy and security.
It is disappointing that the European Commission is fielding unfounded 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. We don't think this is right - we want to maintain a level playing field where anyone with determination and a great idea can succeed."
What conclusion the EU Commission will reach remains uncertain for the time being. Since no legal deadline has been set for the completion of the antitrust investigation, this process could take even longer. (Photo by Andrey_Kuzmin / Bigstockphoto)
