The European Union regulators have accused Apple Inc of breaching the bloc’s technology rules, mainly concerning the App Store and Apple Pay policies. The accusations are primarily based on a complaint originally lodged by Spotify in 2019.
The European Commission, the executive arm of the EU, alleges that Apple’s rules for app developers on its App Store breach EU law. These concerns center on two conditions: the mandatory use of Apple’s proprietary in-app purchase system (for which Apple charges a 30% commission), and a rule forbidding app developers to inform iPhone and iPad users of alternative and potentially cheaper subscription options outside of the apps.
In addition, the EU has also raised concerns over the impact of Apple Pay on competition in the financial services market, especially in relation to the use of Near Field Communication (NFC) technology in iPhones. The NFC chip allows contactless transactions at retail checkout, but its usage is limited exclusively to Apple Pay on all iPhone models, therefore excluding other potential providers.
This represents the first EU antitrust charge against Apple, marking a significant step that could lead to fines of up to 10% of Apple’s global turnover or changes to its business model.
