Future Tech

Apple faces two EU probes into App Store rules, Apple Pay

Tan KW
Publish date: Tue, 16 Jun 2020, 11:45 PM
Tan KW
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Future Tech

Apple Inc faces a pair of European Union investigations into its App Store and Apple Pay, barely four years after it was hit with a record-breaking tax bill by regulators.

EU Competition Commissioner Margrethe Vestager will review whether Apple’s app store rules violate competition law by requiring developers to use the company’s own purchase system, which levies a 30% fee on all subscriptions. The EU will also check on Apple Pay terms and how Apple limits near-field communication for “tap-and-go” functionality to its own Apple Pay.

“It appears that Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices,” Vestager said in a statement on June 16. “We need to ensure that Apple’s rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books.”

The investigation follows a range of probes into America tech giants, which have led to criticism from US president Donald Trump. Google last year wrapped up nearly a decade of probes that racked up some US$9bil in fines. An investigation into Amazon.com is set to escalate in the coming weeks.

Apple said that the EU is responding to complaints from rivals that “simply want a free ride, and don’t want to play by the same rules as everyone else”.

“It’s disappointing the European Commission is advancing baseless complaints from a handful of companies,” Apple said in an emailed statement. “At the end of the day, our goal is simple: for our customers to have access to the best app or service of their choice, in a safe and secure environment.”

The iPhone maker is already fighting Vestager’s 2016 order to repay Ireland €13bil in unpaid taxes. Chief executive officer Tim Cook called Vestager’s decision “political crap” in a longer battle over how digital giants should be taxed in Europe.

 - Bloomberg

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