The European Union has launched an official antitrust investigation into the Apple App Store. The government is concerned that it is possible to sell content in the Apple store only through its own payment system, whose commission is 30%.
The investigation began as a response to complaints from Spotify and an unnamed distributor of digital and audiobooks. They are dissatisfied with Apple’s monopoly on its own platform, as well as its economic policy. In March 2019, Spotify said that a 30% commission was holding back innovation and limiting users’ choices.
The plans of the European government to launch an investigation were reported back in May last year. However, it officially went only this summer. A press release that the European Commission (the highest executive authority in Europe) has taken up work appeared on June 16.
The main thing that the commission should find out: does Apple violate European competition laws? The investigation focused on two limitations of the App Store. It is they who “confuse” the local regulator:
- forced use of one payment system in the store, which takes a 30% commission from the sale of paid applications and subscriptions;
- prohibition on informing users about alternative payment methods outside the app.
“Official investigations of the European Commission rarely remain without consequences. In most cases, companies either change themselves or are forced to do so,” writes Andreas Lober, a partner at the law firm Beiten Burkhardt.
He also notes that the very start of the case means: the European government is very dissatisfied with Apple’s policy regarding third-party payment systems. And if the regulator really comes to the conclusion that this is contrary to local laws, we will witness the appearance of alternative payment instruments on iOS.
As for the commission of 30%, the situation is more complicated here. Now the European Commission does not criticize its size. And, according to Lober, it would be difficult to do this within the framework of existing laws. However, if other payment options with a lower commission appear in Apple, this may force the company to reduce its share of micropayments.
The current investigation is not the first “attack” by state regulators on technology companies. Previously, Google (as a result of investigations against Google Search, Google AdSense and Android, the search company paid huge fines) and Facebook (proceedings are underway in Germany concerning the practices of the social network for data collection).
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- Is there any news?
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