EU opens antitrust investigations into Apple Pay and App Store

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"1">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>The EU Commission has opened antitrust investigations into Apple’s App Store and its Apple Pay platform over concerns they stifle competition&period;<&sol;p>&NewLine;<p>The Commission said it was investigating Apple Pay over allegations the tech giant wields its control over the Pay platform to force developers into using it over others&period;<&sol;p>&NewLine;<p>It said a preliminary investigation had raised concerns that &OpenCurlyDoubleQuote;<i>Apple’s terms&comma; conditions&comma; and other measures related to the integration of Apple Pay<&sol;i>” may &OpenCurlyDoubleQuote;<i>distort competition and reduce choice and innovation<&sol;i>”&period;<&sol;p>&NewLine;<p>In addition&comma; the EU Commission announced it had opened a second investigation into concerns that the firm’s App Store restricts developers from informing iPhone and iPad users of alternative purchasing possibilities&comma; instead pushing &OpenCurlyDoubleQuote;<i>mandatory use of Apple’s own proprietary in-app purchase system”<&sol;i>&period;<&sol;p>&NewLine;<p>Apple said it welcomed the opportunity to show that it gave customers &OpenCurlyDoubleQuote;<i>access to the best app or service of their choice&comma; in a safe and secure environmen<&sol;i>t”&period;<&sol;p>&NewLine;<p>In a statement on the App Store probe&comma; EU Commission executive vice-president Margrethe Vestager said&colon; &OpenCurlyDoubleQuote;<i>It appears that Apple obtained a &OpenCurlyQuote;gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;We need to ensure that Apple’s rules do not distort competition in markets where Apple is competing with other app developers&comma; for example with its music streaming service Apple Music or with Apple Books&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;I have therefore decided to take a close look at Apple’s App Store rules and their compliance with EU competition rules&period;<&sol;i>”<&sol;p>&NewLine;<p>The App Store investigation follows complaints from some rivals&comma; including Spotify&comma; which last year alleged that Apple’s rules were restrictive and anti-competition&comma; arguing Apple’s 30&percnt; tax on purchases made through the payment system on its app store make it anti-competitive because it has its own streaming service – Apple Music&period;<&sol;p>&NewLine;<p>Apple denied those allegations at the time and accused Spotify of seeking to keep the benefits of being on its app store without &OpenCurlyDoubleQuote;<i>making any contributions to that marketplace<&sol;i>”&comma; arguing the majority of Spotify users on Apple’s iOS platform used the free version of the app and so did not contribute to this revenue stream&period;<&sol;p>&NewLine;<p>Responding to the EU Commission’s announcement&comma; Spotify said&colon; &OpenCurlyDoubleQuote;<i>Apple’s anti-competitive behaviour has intentionally disadvantaged competitors&comma; created an unlevel playing field&comma; and deprived consumers of meaningful choice for far too long&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;We welcome the European Commission’s decision to formally investigate Apple&comma; and hope they’ll act with urgency to ensure fair competition on the iOS platform for all participants in the digital economy<&sol;i>&period;”<&sol;p>&NewLine;<p>On the EU Commission’s Apple Pay investigation&comma; Ms Vestager said&colon; &OpenCurlyDoubleQuote;<i>It appears that Apple sets the conditions on how Apple Pay should be used in merchants’ apps and websites&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;It also reserves the &OpenCurlyQuote;tap and go’ functionality of iPhones to Apple Pay&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;It is important that Apple’s measures do not deny consumers the benefits of new payment technologies&comma; including better choice&comma; quality&comma; innovation and competitive prices&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;I have therefore decided to take a close look at Apple’s practices regarding Apple Pay and their impact on competition&period;”<&sol;i><&sol;p>&NewLine;<p>In a statement responding to the announcements&comma; Apple said it had created &OpenCurlyDoubleQuote;<i>groundbreaking new products and services<&sol;i>” in some of the most competitive markets in the world&comma; but that the company &OpenCurlyDoubleQuote;<i>follow the law in everything we do<&sol;i>” and &OpenCurlyDoubleQuote;<i>embrace competition at every stage<&sol;i>”&period;<&sol;p>&NewLine;<p>The technology giant added&colon; &OpenCurlyDoubleQuote;<i>We developed the App Store with two goals in mind&colon; that it be a safe and trusted place for customers to discover and download apps&comma; and a great business opportunity for entrepreneurs and developers&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;We’re deeply proud of the countless developers who’ve innovated and found success through our platform&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;And as we’ve grown together&comma; we’ve continued to deliver innovative new services — like Apple Pay — that provide the very best customer experience while meeting industry-leading standards for privacy and security&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;It’s disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride&comma; and don’t want to play by the same rules as everyone else&period;<&sol;i><&sol;p>&NewLine;<p><i>&OpenCurlyDoubleQuote;We don’t think that’s right — we want to maintain a level playing field where anyone with determination and a great idea can succeed&period;”<&sol;i><&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68eccb361eac6">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; 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