The European Commission continues to fight to curb the power of large tech companies. As a result of several complaints, an investigation is now being started into possible abuse of power by the App Store and Apple Pay. The EC wants to see whether Apple complies with the competition rules.
EU starts investigation into abuse of power
Apple is accused of abusing its power. Because Apple has often received complaints of this kind, the EC is now examining the App Store. Apple has certain rules to ensure that the apps in the App Store are user-friendly for Apple users.
However, these rules can also cause Apple to misuse its power to promote Apple Music or Apple Books, for example, by offering services such as Spotify and Kobo less. The EC is now going to find out to the bone whether that is actually the case.
Complaints about App Store
Apple has been receiving complaints from other companies for a long time. The Cupertino company is said to have too large a market share, preventing other companies from competing well. The investigation follows a complaint that Apple received about a commission rate, which the company asked for e-books in the App Store.
E-reader brand Kobo did not consider the 30 percent commission rate that Apple received for e-books from the App Store fair. Especially since Apple also promotes its own Apple Books service in the App Store.
Spotify also filed a complaint against Apple in March. The music service felt that Apple had made the App Store rules so that the choice of apps was deliberately limited. According to Spotify, Apple thus disadvantaged certain app developers.
Complaints about Apple Pay
Also, Apple Pay is suspected by the EU competition rules go too. Apple has limited the NFC function of iPhones and Apple Watches so that it only works via Apple Pay. Apple is the only one with access to the so-called ‘tap and goes’ technology to pay quickly. As a result, banks cannot offer their own NFC payments through their own online banking apps.
Apple disagrees with the complaints
The Cupertino company responded to the announcement of the investigation. Apple says the complaints are unfounded and regrets that the European Commission has responded to these complaints. Should Apple be accused, the tech manufacturer will have to dig deep into the pouch. In addition to having to adjust the rules, Apple will be fined a maximum of 10 percent of its annual turnover.
Earlier this month, it became clear that the EU wants to be able to tap big tech companies like Apple faster. The European Commission wants to lay down measures against the great power of tech companies. The European Parliament also made several attempts to establish a universal charging standard for electronics.