The European Competition Authority is filing a complaint against Apple (NASDAQ: AAPL) for forcing app developers in the App Store to use its own payment system.
The American tech giant would abuse its dominant position in the smartphone market, according to European Competition Commissioner Margrethe Vestager. The music streaming service Spotify, which believes that Apple offers its services too expensive on iPhones and is abusing its dominant position in the online music market, had already filed a complaint two years ago.
Another lawsuit
Epic Games, the American company behind the video game Fortnite, had already taken Apple to court in Europe. Apple collects a commission of 15 to 30% on purchases through its App Store. Users can download applications for their smartphone or tablet through its App Store. It prohibits developers from using alternative payment methods. Epic had tried to get around that payment system, after which Apple threw Fortnite from the App Store.
Photo by Joshua Hoehne on Unsplash
“Apple violates European competition law,” argues Vestager. “Apple Music (Apple’s own music streaming service, ed.) Competes with other music services, but Apple collects high commissions from those competitors in the App Store. It also prohibits them from informing consumers about alternative payment methods, which puts consumers at a disadvantage.”
The European Commission isn’t the only body chasing Apple. The British competition regulator CMA has also started an investigation after complaints from various software developers.
What's your reaction?
