EU Launches Antitrust Investigation Against Apple

By Marko Vidrih on The Capital

The European Commission will check the work of Apple Pay and the App Store for compliance with European laws.

The European Commission has opened an antitrust investigation against Apple because of a possible violation of EU standards in the operation of Apple Pay and the App Store, according to an EC press release.

The investigation concerns Apple’s conditions for integrating Apple Pay into apps and merchant sites for iPhone and iPad, Apple’s restrictions on access to NFC functionality on iPhone for making one-touch payments in stores, and possible denial of access to Apple Pay.

The validity of the mandatory use of the proprietary IAP proprietary shopping system in the Apple Store apps will be verified. Now, developers are charged a fee of 30% of all subscription fees through the IAP.

Also, the investigation of the European Commission will touch upon restrictions for developers regarding informing iPhone and iPad users about alternative cheaper opportunities for in-app purchases. So, according to Apple’s rules, it’s not allowed to inform users that music, e-books and audio books can be bought cheaper on the developer’s website, and not through his application.

The report said that the basis for such an investigation was complaints from the music streaming service Spotify, which is a competitor to Apple Music, as well as a distributor of electronic books and audio books, which competes with Apple Books.

In 2019, representatives of Amazon, Facebook and Google appeared in court before the U.S. Antitrust Committee as part of an antitrust investigation. The hearing was related to the market influence of these online platforms on innovation and entrepreneurship.

Later on, a group of US state attorneys announced a forthcoming antitrust investigation against tech giants Amazon, Apple, Facebook and Google.

Author: Marko Vidrih

Featured image credit: Unsplash

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