Apple faces two EU antitrust probes over apps
Probes follow complaints from Apple rivals including music-streaming service Spotify Technology SA
BRUSSELS — European Union antitrust authorities launched two probes into whether Apple Inc. violated competition laws through its Apple Pay service and its App Store, escalating the bloc’s long-running battle with the tech giant.
If found guilty, Apple could face a fine of up to 10% of its annual revenue and be forced to adjust its business practices.
The probes follow complaints from Apple rivals including music-streaming service Spotify Technology SA, which last year filed an antitrust complaint with the EU against Apple over allegedly restrictive rules for developers that use the App Store.
Bangkok, Thailand - July 13, 2019 : iPhone user touching Facebook logo on iPhone screen to open the app.
Separately, the EU has fielded complaints that Apple has abused its control over Apple Pay to force app developers into using its system rather than those of rivals. In its announcement Tuesday, the European Commission, the EU’s executive arm, said it would examine how Apple allows only its own Apple Pay service to use the no-contact payment system built into Apple devices.
APPLE APP STORE SUPPORTED $519 BILLION IN ONLINE COMMERCE IN 2019, STUDY FINDS
“It’s disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else,” an Apple spokesman said.
HOW TIM COOK INCREASED APPLE'S SUCCESS DESPITE LOSS, NAYSAYERS, MISSTEPS
Apple has defended its practice of taking a 30% cut of sales through the App Store. The company denied hurting rivals and said it wants apps that compete with its services to thrive.
Apple CEO Tim Cook waves after speaking at the Apple Worldwide Developers Conference in San Jose, Calif., Monday, June 3, 2019. (AP Photo/Jeff Chiu)
The new probes mark a significant second front in the EU’s battle with Apple over alleged violations of European competition law. In 2016, EU Competition Commissioner Margrethe Vestager ordered Ireland to claw back roughly €13 billion ($14.7 billion) in alleged tax benefits from Apple.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Apple has appealed the ruling, which earned Ms. Vestager the nickname “tax lady” from President Trump, but was forced to park the sum in an escrow account.
The EU’s tussles with Apple over competition issues contrast with a more cooperative relationship on the contentious issue of data privacy. The EU has taken an exceptionally strong stance in defending consumers’ privacy rights online, often putting it at odds with tech and corporate giants. Apple Chief Executive Tim Cook in 2018 came out strongly in support of the EU position, saying personal information had been “weaponized” by a “data-industrial complex.”
Dow Jones & Co., publisher of The Wall Street Journal, has a commercial agreement to supply news through Apple services.