Spain’s National Markets and Competition Commission (CNMC) has begun investigating potential antitrust behavior by Apple on its App Store. According to allegations, Apple may be infringing competition by imposing unfair commercial conditions on its platform.
Antitrust allegations against Apple
The investigation, launched last week, alleges that Apple imposes unfair commercial conditions on developers, which may violate the Spanish Competition Act and Article 102 of the Treaty on the Functioning of the European Union. Apple charges 30% commission to App Store developers earning more than $1 million annually, and 15% for smaller developers.
In January, Apple announced alternative terms for EU developers. Developers were offered a lower commission option, ranging from 10-17%, with a 3% surcharge if they used the App Store payment processor. However, apps that choose these alternative terms are charged a core technology fee of €0.50 per user for those with more than 1 million downloads per year.
In a statement to Reuters, Apple denied the allegations of unfair commercial terms. “Spanish developers of all sizes compete on a level playing field in the App Store,” an Apple spokesperson said, adding that the company ”will continue to work with the Spanish Competition Authority to understand and respond to their concerns.”
Earlier this year, Apple faced a $2 billion fine from the European Union. If Apple is found to have violated the Spanish Competition Act, it could be fined up to 10% of the previous year’s profits.
Although this investigation has just been launched, the CNMC has 24 months to examine Apple and make a final decision. This in-depth investigation by Spanish authorities into Apple’s apps in the App Store could pave the way for similar investigations in other countries.
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