On June 16th, 2021, the European Commission announced that it had opened two antitrust investigations into Apple's App Store rules and practices. The investigations will focus on the mandatory use of Apple's proprietary in-app purchase system and the company's restrictions on app developers regarding the communication of alternative purchasing options to users. The investigations were opened following complaints from Spotify and Rakuten, among others, regarding alleged anticompetitive practices by Apple.
According to the European Commission, Apple's App Store rules and practices may breach EU competition rules by distorting competition in the music streaming and e-book/audiobook markets. The Commission will investigate whether Apple's mandatory in-app purchase system, which requires app developers to use Apple's payment system and pay a commission of up to 30%, has resulted in higher prices for consumers and limited choice for app developers. The Commission will also investigate whether Apple's restrictions on app developers regarding the communication of alternative purchasing options to users have limited competition and innovation in the app market.
Apple has responded to the Commission's announcement, stating that the company welcomes the opportunity to clarify the company's practices and policies. Apple has also defended its App Store rules and practices, stating that the company has created a level playing field for app developers and has been instrumental in the success of the app economy.
The investigations by the European Commission are part of a broader global trend of increased scrutiny of big tech companies and their practices. In recent years, tech giants such as Apple, Google, Facebook, and Amazon have faced numerous antitrust investigations and lawsuits around the world.
In conclusion, the European Commission's investigations into Apple's App Store rules and practices highlight the ongoing debate over the role of big tech companies in the global economy. While Apple has defended its practices as fair and beneficial to app developers and consumers, the investigations will seek to determine whether the company's mandatory in-app purchase system and restrictions on alternative purchasing options have resulted in anti-competitive practices. The outcome of the investigations could have significant implications for the app market and the broader tech industry.
Sources:
- "Antitrust: Commission opens investigation into Apple's App Store rules", European Commission Press Release, June 16th, 2021
- "Apple faces antitrust probes in Europe over App Store and Apple Pay", The Verge, June 16th, 2021
- "Apple's App Store is under antitrust scrutiny yet again", CNN Business, June 17th, 2021
- "Apple under investigation by UK competition watchdog", BBC News, March 4th, 2021
- "The Epic Games v. Apple antitrust lawsuit, explained", Vox, May 7th, 2021
