POLICY
POLICY
POLICY
EU reportedly preparing antitrust probe into Apple’s App Store rules
A year and a half after its last run-in with European Union regulators, Apple Inc. is reportedly facing the prospect of another investigation.
The Financial Times reported today that the EU’s antitrust body is preparing to launch a probe into the iPhone maker’s conduct towards iOS developers. The investigation could start within weeks, according to the sources who spoke with the paper. They said the move is a direct response to the antitrust complaint that Spotify Technology SA filed against Apple in Europe this March.
The Swedish music streaming provider, whose platform competes with Apple Music, accused the iPhone maker of placing unfair restrictions on its service in the App Store. Spotify has taken issue with several of the company’s policies across areas such as app update approvals and email marketing. But it’s Spotify’s criticism about Apple’s in-app transaction rules that’s drawing the most attention.
The iPhone maker allows iOS developers to process purchases only by using its own IAP payment system. Apple charges a 30% commission on transactions in the first year and 15% from there onward, a fee that Spotify sees as unfair.
“If we pay this tax, it would force us to artificially inflate the price of our Premium membership well above the price of Apple Music,” Spotify Chief Executive Daniel Ek stated earlier this year. “As an alternative, if we choose not to use Apple’s payment system, forgoing the charge, Apple then applies a series of technical and experience-limiting restrictions on Spotify.”
Apple has publicly pushed back against several of Spotify’s accusations. However, analyst at KeyBanc, a financial institution that tracks the iPhone maker’s stock, has warned the complaint carries “meaningful” regulatory risk.
The EU’s decision to formally launch an investigation seems to affirm this viewpoint. According to the Financial Times, regulators found grounds to start a probe after conducting a survey of multiple Apple customers, competitors and other parties.
The development comes just weeks after Dutch antitrust authorities opened a similar investigation into Apple’s App Store policies. The probes adds to the growing scrutiny that U.S. tech giants face in the EU, where regulators have been penalizing competition law violations with massive fines. Google LLC alone has been hit with $9.3 billion in fines over the past three years.
Photo: Pixabay
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