Regulators in Europe appear to be widening anti-competition investigations into Apple, putting more pressure on how the App store optimizes fees through transactions.
The
Apple has 12 weeks to respond to its preliminary conclusion, and at a Friday press conference the EU’s head of competition policy Margrethe Vestager said the EU is also looking into antitrust violation over electronic gaming distribution, suggesting the investigation has widened.
The EU said its research shows people don’t usually switch from Apple to Google devices, underscoring the lack of negotiating power software developers have in setting fees paid to platforms.
The move comes as Apple heads to court next month in the U.S. in a different fee-related battle with Epic Games. And France’s competition authority this week separately suggested in a report that unregulated technology companies including Apple—along with Google and Amazon—could soon require
Apple has mostly avoided substantial consequences from foreign regulators complaining about its market power. The Cupertino, Calif.-based tech giant
But the latest combination of lawsuits from music and gaming industries—plus a perception that Apple and Google have gained unfair marketing advantages in an unregulated sphere—might change the game for Apple.
Apple has already made a few concessions. Last year Apple cut the fees it charges developers selling apps on its platform by 50%, reducing the fee to 15% from 30% for developers who reap at least $1 million a year.
The case is being closely watched by merchants who see echoes of
Spotify accuses Apple of unfairly using its in-app purchase system to take a cut of its subscription fees.
“Ensuring the iOS platform operates fairly is an urgent task with far-reaching implications. The European Commission’s Statement of Objections is a critical step toward holding Apple accountable for its anticompetitive behavior, ensuring meaningful choice for all consumers and a level playing field for app developers,” said Horacio Gutierrez, Spotify’s head of global affairs, in an emailed statement.
U.S.-based Epic Games earlier this year filed a separate antitrust complaint against Apple with the European Commission. That followed Epic’s ongoing antitrust lawsuit against Apple in the U.S. over gaming download fees, which goes to trial next month. Epic is also going after Apple in the U.K. on similar grounds.
Epic last year tried to find a way around paying Apple’s 30% App Store fee for game downloads, and Apple blocked Epic’s access to the App Store.
Microsoft and other software developers are backing Epic. Apple plans to vigorously defend its policies in Europe. Apple said Spotify does not pay Apple any commission on more than 99% of its paid subscriber base, and the company points to Spotify’s own admission that most of its global customers access the music-streaming service from diverse ecosystems.
“At the core of this case is Spotify’s demand that they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows,” Apple said in an emailed statement. “Once again, they want all the benefits of the App Store but don’t think they should have to pay anything for that. The Commission’s argument on Spotify’s behalf is the opposite of fair commission,” the statement said.
