Germany’s antitrust authority has confirmed that Apple meets the criteria for special abuse controls, having “paramount significance for competition across markets.” The designation will last for five years.
A complex ecosystem
The authority asserts that Apple holds a dominant market position due to its smartphones, tablets, smartwatches, proprietary operating systems, and the App Store. As stated in a press release, Apple is active in various market levels and business areas that are interconnected. This enables the company to tie its users to its complex ecosystem on a long-term basis. This is associated with a strong power to set rules for third parties, above all for app developers.”
Apple joins Amazon, Google, and Meta (Facebook) in receiving this designation from the Federal Cartel Office (FCO). In late March, an investigation was also launched to assess Microsoft’s competitive muscle, which is still ongoing.
Swift action against anti-competitive practices
Germany passed an ex-ante update to its domestic competition regime in 2021, aiming to empower the federal regulator to tackle Big Tech’s market power. This move precedes the European Commission’s upcoming Digital Markets Act. The Act will designate internet “gatekeepers” and apply operational rules to their businesses.
Andreas Mundt, president of the Bundeskartellamt, commented on the Apple decision. He highlighted that Apple has an economic position of power across markets. This power enables the company to act without sufficient control from competition. Mundt added, “This decision enables us to specifically take action against and effectively prohibit anti-competitive practices.”
The FCO can now act more swiftly if it sees competition concerns arising from how Apple operates its platforms and products. Last year, the regulator began investigating Apple’s tracking rules. These rules are part of the App Tracking Transparency (ATT) framework, which governs tracking permissions for third-party apps on iOS. The FCO is examining whether these rules could favor Apple’s own offers or impede others. It is important to note that, as of now, no decision has been made yet on initiating further proceedings against Apple.
The implications of the FCO’s decision remain to be seen, but it could potentially result in increased scrutiny on Apple’s business practices in the future. Apple has been contacted for comment on the FCO’s decision.
