Apple hit with another antitrust case as Spain launches investigation into App Store practices

1 month ago 13

The new investigation will look into whether Apple has been imposing unfair commercial conditions on developers who use the App Store. Unlike many other probes, this one was not sparked by a specific complaint but was initiated by Spain’s competition regulator read more

Apple hit with another antitrust case as Spain launches investigation into App Store practices

Should Apple be found guilty, they would be fined to about 10 per cent of a company’s total worldwide turnover from the previous year. Image Credit: Reuters

Spain has launched an investigation into Apple, accusing the tech giant of potentially engaging in anticompetitive actions related to its treatment of developers on the App Store.

The investigation is being conducted by Spain’s Comision Nacional De Los Mercados Y La Competencia (CNMC), which has a history of scrutinizing major tech companies for antitrust behaviour.

Previously, CNMC fined Apple and Google a combined $218 million for such actions, though this fine is currently suspended pending an appeal with the Spanish High Court.

The new investigation, announced by Europa Press, will look into whether Apple has been imposing unfair commercial conditions on developers who use the App Store. Unlike many other probes, this one was not sparked by a specific complaint but was initiated by CNMC itself due to the significant economic impact of app stores in Spain.

At this early stage, the CNMC has not detailed the specific allegations against Apple. However, similar investigations in other countries have often focused on Apple’s anti-steering rules, which restrict developers from directing users to alternative payment methods outside of the App Store.

Should Apple be found guilty, it would violate Spain’s Article 2 of the Law on the Protection of Competition (LDC). This law allows for penalties of up to 10 per cent of a company’s total worldwide turnover from the previous year. Given Apple’s massive global revenue, such a fine could be substantial.

The CNMC has a two-year window to conclude its investigation and reach a ruling. Apple has not yet commented on the new investigation.

This move by Spain follows a broader trend of increased regulatory scrutiny of major tech companies worldwide, particularly concerning their control over digital marketplaces and the terms they set for developers. If the CNMC finds Apple guilty, it could lead to significant changes in how the App Store operates in Spain and potentially influence similar actions in other regions.

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