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June 16, 2020 04:10 pm

EU Launches Antitrust Probes Into Apple's App Store and Apple Pay

The European Commission announced Tuesday that it's launching two antitrust investigations into Apple's App Store rules and the Apple Pay platform. From a report: The Commission, the executive arm of the EU, said it will assess whether Apple's rules for app developers on the distribution of apps via the App Store breach EU competition rules. While companies can place their apps on the App Store at no cost, Apple charges companies 30% from in-app purchases and 30% on subscriptions for the first year, then 15% thereafter. Spotify, which competes directly with Apple Music, feels this is unfair and filed a formal complaint in March 2019. Kobo, an e-reader company that competes with Apple Books, has also filed a complaint. Executive Vice-President Margrethe Vestager, in charge of competition policy, said in a statement: "Mobile applications have fundamentally changed the way we access content. Apple sets the rules for the distribution of apps to users of iPhones and iPads. It appears that Apple obtained a 'gatekeeper' role when it comes to the distribution of apps and content to users of Apple's popular devices. We need to ensure that Apple's rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books. I have therefore decided to take a close look at Apple's App Store rules and their compliance with EU competition rules."

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