EU launches antitrust investigation into Apple Pay and App Store

The European Commission has launched two separate antitrust investigations into Apple, focusing on the App Store and Apple Pay. EU authorities have said they will consider App Store rules that force developers to use Apple's system for payments and in-app purchases.

EU launches antitrust investigation into Apple Pay and App Store

The commission cited a complaint filed by Spotify over a year ago. At the time, the latter's CEO and founder, Daniel Ek, argued that the 30% commission Apple charges on all transactions, including in-app purchases, causes the service to raise prices compared to Apple Music's offerings. Of course, Spotify users can pay for services on another platform, including the Internet. But if the company tries to bypass the Apple payment system, the latter will limit advertising and communication with customers. β€œIn some cases, we are not even allowed to send emails to our customers who use Apple devices,” he wrote, among other complaints.

The commission said it had completed its preliminary investigation and found evidence that Apple was preventing competition from its own services. β€œApple’s competitors have either decided to completely disable in-app subscriptions or have increased their prices, shifting the burden to users,” EU authorities explained in a press release. "In both cases, they were not allowed to inform users about alternative subscription options outside of the app."

Spotify is not the only company to file a complaint. In its press release, the Commission said that a certain distributor of e-books and audiobooks also filed similar complaints on March 5, 2020 against Apple Books and the rules of the App Store.

EU launches antitrust investigation into Apple Pay and App Store

The second antitrust investigation focuses on Apple Pay, which is the only mobile payment option available to iPhone and iPad users. After a preliminary investigation, the Commission began to suspect that the situation hinders competition and reduces consumer choice on the platform. At the same time, the demand for mobile payment systems is growing because European citizens seek to minimize physical contact with cash.

Apple is not satisfied with the decision of the Commission to launch a dual investigation. In its statement, the company noted that it follows the letter of the law and is open to competition at all stages. The EU is taking unfounded complaints from a handful of companies that just want to use Apple's services for free and don't want to play by the same rules as everyone else, Cupertians said. The company concluded: β€œWe don’t think this is right – we want to maintain a level playing field so that anyone with determination and a great idea can succeed. At the end of the day, our goal is simple: that our customers have access to the best app or service of their choice in a safe and secure environment.”



Source: 3dnews.ru

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