EU takes another bite at Apple

The EU Commission has launched two antitrust investigations into Apple over allegations the trillion-dollar vendor has broken EU competition legislation.

In a statement, EU Commissioner EVP Margrethe Vestager said the first investigation will be into whether Apple Pay deliberately denies customer choice.

"Mobile payment solutions are rapidly gaining acceptance among users of mobile devices, facilitating payments both online and in physical stores," she said.

"It appears that Apple sets the conditions on how Apple Pay should be used in merchants' apps and websites.

"It also reserves the "tap and go" functionality of iPhones to Apple Pay.

"It is important that Apple's measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices. I have therefore decided to take a close look at Apple's practices regarding Apple Pay and their impact on competition."

In parallel, the Commission has also opened an antitrust investigation into whether Apple's rules for app developers on its App Store violate EU competition rules.

Currently, Apple takes a 30 per cent cut of revenues from apps sold through its App Store.

The EU Commission has had some App publishers complain that third-parties have little option but to comply with Apple's set conditions with no flexibility or ability to negotiate.

Apple has responded by calling the EU investigations "disappointing", adding that the Commission is "advancing baseless complaints".

However, the company has been facing months of mounting scrutiny over its business practices, globally.

CEO Tim Cook is being publicly pressured by some US lawmakers in the House Judiciary Committee to testify before US Congress over antitrust allegations.

Meanwhile, the company is also fighting allegations from the French antitrust authority that it behaved "like a cartel" in fixing prices and "sterilising" the French channel.

The EU Commissioner has not set a deadline for the investigations to be completed.

 

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• Topics
• Vendor
• Apple
• EU Commission
• Margrethe Vestager
• antitrust
• Apple Pay
• App Store