Unfair Competition: Apple faces investigation over App Store dominance

*The European Union, United Kingdom are investigating Apple for app developers, focusing on whether the company’s terms and conditions are unfair, and violate the UK’s competition laws

Emmanuel Akosile | ConsumerConnect

For engaging in unethical business dealings with the competition, the European Union (EU) is reportedly readying formal charges against Apple related to concerns of anti-competitive behaviour on its App Store, as well as its music streaming service Apple Music.

Financial Times, citing sources familiar with the matter Thursday stated the EU plans to argue that Apple restricted music streaming services other than its own Apple Music, giving the tech giant an unfair advantage over competitors and reducing consumers’ options.

The charges come two years after Spotify accused Apple of using its App Store policies and market dominance to stifle competition.

Spotify said Apple’s practice of charging a 30 percent tax on in-app purchases forced rival streaming services to compete with Apple Music.

Spotify CEO Daniel Ek wrote in 2019: “In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience—essentially acting as both a player and referee to deliberately disadvantage other app developers.

“After trying unsuccessfully to resolve the issues directly with Apple, we’re now requesting that the EC take action to ensure fair competition.”

The United Kingdom (UK) is also currently investigating Apple’s terms and conditions for app developers.

The probe will focus on whether Apple’s terms and conditions are unfair and whether they violate the UK’s competition laws.

Andrea Coscelli, Chief Executive of the Competition and Markets Authority (CMA), the UK’s competition regulator, in a statement said: “Millions of us use apps every day to check the weather, play a game or order a takeaway.

“So, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice – potentially causing customers to lose out when buying and using apps – warrant careful scrutiny.”