Apple in hot water with EU again
Print Edition
The EU鈥檚 powerful competition authority opened a series of cases against Apple yesterday in a sign that Brussels isn鈥檛 backing down in its efforts to rein in US-based tech giants.
The cases put Apple back in the EU鈥檚 crosshairs four years after Brussels ordered the California-based giant to repay 13 billion euros (US$14.7 billion) in back taxes based on antitrust concerns.
The claims 鈥 which Apple angrily rejects 鈥 land as Brussels is preparing historic changes to EU law that would beef up Europe鈥檚 ability to limit the size and power of so-called digital 鈥済atekeepers,鈥 including Amazon, Google and Facebook.
In the EU鈥檚 first case, the European Commission followed a complaint brought by Sweden-based Spotify and others accusing Apple of making unfair use of its app store to promote its own Apple Music.
The commission also launched an in-depth investigation into Apple Pay based on concerns the fast-growing and easy-to-use payment system is shutting out rivals.
Spotify filed a formal complaint in 2019 taking issue with restrictions by Apple on apps that don鈥檛 use its payment system on its App Store.
Apple takes a 30 percent cut from businesses using its store, which Spotify says amounts to a violation of fair-competition rules.
鈥淚t appears that Apple obtained a 鈥榞atekeeper鈥 role when it comes to the distribution of apps and content to users of Apple鈥檚 popular devices,鈥 said EU Executive Vice President Margrethe Vestager. 鈥淲e need to ensure that Apple鈥檚 rules do not distort competition in markets where Apple is competing with other app developers 鈥 for example, with its music-streaming service, Apple Music, or with Apple Books.鈥
The European Union鈥檚 in-depth investigations don鈥檛 necessarily mean a fault has been found, and there is no deadline for the commission to complete its case.
But the commission said it would pursue the case 鈥渁s a matter of priority鈥 in response to complaints the EU moves too slowly in clamping down on the fast-changing tech business.
鈥淎pple鈥檚 anti-competitive behavior has intentionally disadvantaged competitors, created an unlevel playing field, and deprived consumers of meaningful choice for far too long,鈥 Spotify said in a statement. 鈥淲e welcome the European Commission鈥檚 decision to formally investigate Apple and hope they鈥檒l act with urgency to ensure fair competition on the iOS platform for all participants in the digital economy.鈥
Vestager also opened a full-scale probe into Apple Pay where authorities are worried the company could take a commanding lead in a booming business.
Launched in 2014, Apple Pay allows those with iPhones to make payments at retailers by using their devices at the same terminals currently used for credit and debit cards.
But any company wanting to use the technology on an iPhone 鈥 whether a bank or the London metro system 鈥 must pass through Apple Pay for a fee.
Apple rejected the legality of the cases and lashed out at its rivals. 鈥淚t鈥檚 disappointing the European Commission is advancing baseless complaints from a handful of companies that simply want a free ride and don鈥檛 want to play by the same rules as everyone else,鈥 an Apple official said. 鈥淲e don鈥檛 think that鈥檚 right 鈥 we want to maintain a level playing field for everyone.鈥
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