(CTN News) – The Apple App Store is now facing the following antitrust issues in Europe: On Wednesday, the Spanish Competition and Markets Commission (CNMC) said that it will be looking into Apple’s App Store.
Finding out if the iPhone maker is putting developers under unfair business conditions to offer their products to iOS users through its store is the aim of the study.
It was stated in a news release [machine translated from Spanish] that Apple may be engaging in anti-competitive practices when it imposes unfair trading conditions on developers who distribute applications through Apple’s App Store. In light of the particulars of the CNMC’s concerns, this is the only informational piece released so far.
As of right now, we don’t know the outcome of the Spanish authorities’ inquiry, which might take up to two years to complete.
On the other hand, Apple can face fines as high as 10 percent of its yearly worldwide revenue, or billions of euros, if the CNMC finds evidence of antitrust violations.
iOS developers always complain about the App Store.
Among the App Store issues raised by these complaints were the company’s in-app sales prices and the way its payment technology was being used.
Concerns have also been raised about Apple’s decision-making procedure for app reviews and general App Store administration; certain developers have accused the corporation of discriminating and capricious decision-making.
Apple, however, claims to adhere to clear and consistent criteria when working with iOS developers. These rules are intended to ensure that users of mobile devices can expect a high-quality and safe experience from the App Store.
Furthermore, Apple claims that developers receive the great bulk of app store earnings (billings and sales) with no commission paid to the corporation. This is a higher than 90% proportion.
Apple spokeswoman Emma Wilson released a statement in response to the CNMC’s probe. The company said in the statement that it will “keep working with the Spanish Competition Authority to comprehend and address their concerns.”
Apple is facing more and more regulatory issues as a result of European antitrust regulators’ increased readiness to intervene and take on Big Tech in recent years.
This includes an agreement reached earlier in July to force Apple to allow contactless payments on iOS devices, in addition to a fine for antitrust violations from the European Union that was assessed in March for music streaming app anti-steering and totalled 1.84 billion euros.
The adoption of new competition regulations in Europe is causing further problems for the manufacturer of iPhones.
The European Commission launched an investigation into its App Store earlier this year because of a potential infraction of the EU’s Digital Markets Act (DMA). The DMA is an ex ante competition reform that is applicable across the EU. Violation of the rules can result in severe penalties, up to 10% turnover or higher.
The Commission revealed its initial conclusions that Apple’s anti-steering rules are illegal. Publication of these results took place last month.
Additionally, the Commission has opened a second investigation into Apple about a new charge known as the Core Technology Fee (CTF). Developers who agree to the version of Apple’s business terms that grants them access to DMA privileges must pay this price.
Currently, the App Store Commission is conducting its investigation.
In addition, the European Union declared that it is looking into how Apple has complied with a DMA regulation allowing independent app stores.
Developers claim Apple has made it harder for iOS customers to download and use other marketplaces than it would be for them to access Apple’s own App Store natively.
They contend that this goes directly against the goal of the DMA, which is to facilitate iOS users’ usage of alternate marketplaces. To restate, the Commission will choose the appropriate method of arbitration.
A competition reform centred on Big Tech is about to be passed in the United Kingdom, and it looks like Apple could soon be subject to more localised abuse regulations.
Furthermore, lawsuit investors are swarming after Apple was hit with numerous antitrust cases over how it handled ecosystem developers.
SOURCE: TCN
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Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
