The German Bundeskartellamt (the antitrust office) has initiated proceedings against Apple over complaints of anti-competitive behavior relating to the App Store, its products and other services, according to a press release.
The lawsuit against Apple announced today will determine whether the Cupertino tech giant has "primary significance in all markets" and whether, through its ecosystem, Apple has enough power to make it difficult for "other companies" to challenge it.
In January 2021, the 19th amendment to the German competition law (GWB digitization law) came into effect. A new section (Section XNUMX GWB) allows the authority to intervene earlier and more effectively against the practices of large digital companies. In a two-step process, the Bundeskartellamt can prohibit competing companies in the markets from engaging in anti-competitive practices.
On the basis of this first proceeding, the Bundeskartellamt intends to further evaluate Apple's specific practices in a possible additional proceeding. In this regard, the Authority has received several complaints relating to potentially anti-competitive practices. These include, but are not limited to, a complaint from the Association of the Media and Advertising Industry against Apple for limiting user tracking with the introduction of its iOS 14.5 operating system and a complaint against the exclusive pre-installation of Dell applications. company as a possible type of "personal preference" prohibited by Section 19 of the GWB.
App developers also criticize the mandatory use of Apple's proprietary In-App Purchasing (IAP) system and the associated 30% commission rate. In this context, marketing restrictions for app developers are also addressed in the Apple App Store.
This latest complaint has a lot in common with the European Commission's ongoing case against Apple for imposing restrictions on the Spotify streaming service and, consequently, preference for its services.
Where necessary, the Bundeskartellamt will establish contacts with the European Commission and other competition authorities in this regard. So far, no decision has been taken on the initiation of a new procedure.
Updated: Apple provided this statement in response to the investigation.
Apple prides itself on being an engine for innovation and job creation, with over 250.000 jobs supported by the iOS app economy in Germany. Economic growth and the activity of the App Store have given German developers of all sizes an equal opportunity to share their passion and creativity with users around the world, while creating a safe and reliable place to download. from customers. protections they expect. Germany is also home to Apple's largest engineering center in Europe and a new € 1 billion investment in our European Silicon Design Center in Munich. We look forward to discussing our approach with the FCO and to have an open dialogue about any of your concerns.
