Apple is being investigated by the EU Antitrust Commission over its App Store and Apple...

Humza

Posts: 666   +159
Staff member

It was just yesterday we learned that Apple generated a whopping $519 billion of sales through the App Store. The platform has been revolutionary in terms of how people shop from their phones, consume digital services and has created a vast pool of app developers and businesses, all of whom have to agree with Apple's terms and conditions for hosting their apps on the App Store. It's either Apple's way or the highway.

The company is now being investigated for these rules by the EU to determine if they violate its competition policies. "Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices," said Margrethe Vestager, EU's executive vice president in charge of the competition policy. She also noted that Apple's own services like Apple Music and Apple Books are competing against other app developers and that the EU needs to ensure that Cupertino's rules governing the App Store do not distort competition.

Apple has previously been accused of gatekeeping by several companies with competing apps on the App Store. Spotify launched a complaint in March last year, calling Apple's 30 percent store commission unfair, as well as using the marketplace to promote its own Apple Music service. Spotify's chief legal officer said on Tuesday that Apple acts as "the stadium owner, referee, and player, and tilts the playing field in favor of its own services," while calling out EU's investigation as an important first step towards determining the conduct of online platforms in the future.

A similar complaint came recently from eBook Company Kobo. It also has to pay a 30 percent fee to Apple on book sales, and said it was difficult to remain profitable while competing with Apple Books, which doesn't incur the same costs. To avoid this tax, Kobo says it's forced to sell content through its own website, putting users at an inconvenience since they can't make purchases from within the app.

The EU's second antitrust investigation has to do with how Apple dictates the use of its NFC technology across merchant's apps and websites. Vestager notes that mobile payment solutions are rapidly gaining acceptance, and their usage has surged recently due to the ongoing pandemic as customers turn to online and contactless payments. Apple, however, appears to be setting conditions for using Apply Pay, for which it has exclusively reserved the "tap and go" functionality, preventing competing services from offering the same convenience to customers.

Apple expressed disappointment with the EU's decision to advance these "baseless complaints," which it said came from a handful of companies who simply want a free ride. The company later told The Verge that it now welcomes the investigation as an opportunity to prove its case as it gave Apple customers "access to the best app or service of their choice, in a safe and secure environment."

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Thanthan

Posts: 17   +30
Apple should have its app business forcibly removed from its store/device business. It doesnt make Any sort of sense for them to be "competing" in a store where they can freely force out third party through RIDICULOUS profit shares (30% is close to traditional retail with brick and mortar stores...) while pushing their own products to the top of the recommended feeds whether theyre any good or not. It smashes competition in the app space that a company can always just make its own app and undercut you by 30% because it owns the ecosystem.
 
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Uncle Al

Posts: 7,077   +5,437
"Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices"

Is this even a question? Of course they do and like others, when will do whatever they can to maintain dominance. The real issue is .... what did it take this long to do anything about it and what about companies like Amazon that take this to a further extent? We really need a honest Consumer Protection Agency that free to do it's job and not motivated or driven by any political influence.
 

Lew Zealand

Posts: 1,381   +1,353
TechSpot Elite
We really need a honest Consumer Protection Agency that free to do it's job and not motivated or driven by any political influence.
No chance of that, ever. Conservatives prefer that business do their own thing and keep the govts nose out of it and Liberals want the govt to manage everything but nobody is even remotely interested in paying the govt to do so.
 

BadThad

Posts: 281   +203
Just another money grab by the EU. Typical, when the EU needs money, they turn to the biggest companies with the most money. Hard to believe it's even worth doing business in EU with those greedy politicians constantly scheming to pick the pockets of America. DISGUSTING
 
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redhat

Posts: 98   +94
I think imposing 30% tax/fee on Apple store profit/or apple products will make good start, not to forget their tactic to control devices prices in dozen of countries.
Companies with great talents/innovation/profit, why doing such dirty tactic really dont understand
 
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BadThad

Posts: 281   +203
I think imposing 30% tax/fee on Apple store profit/or apple products will make good start, not to forget their tactic to control devices prices in dozen of countries.
Companies with great talents/innovation/profit, why doing such dirty tactic really dont understand
Do you realize taxes are ALWAYS passed on to the consumer? There are no "dirty tactics", this is nothing more than a money grab by the far over-legislated EU garbage hole.