Apple is facing a new antitrust investigation in Spain. The country’s competition authority, CNMC, announced on Wednesday that it is investigating whether Apple is unfairly treating developers who use the App Store to distribute their software to iPhone and iPad users.
Spain adds another lawsuit to Apple’s collection
While the CNMC has not shared many details, their press release suggests Apple might impose unfair conditions on developers. If the investigation finds that Apple broke competition rules, the company could be fined up to 10% of its global annual turnover, which could amount to billions of euros. If found guilty of breaching competition rules, Apple could face a potential fine of up to $38.3 billion based on its 2023 revenue of $383 billion
Developers have long complained about Apple’s App Store. Their issues include the high fees Apple charges for in-app purchases and its payment system, as well as problems with how Apple reviews and manages apps. Some developers believe Apple’s decisions are arbitrary and unfair.
Apple’s response
Apple says it has clear and consistent rules for developers to ensure the App Store is safe and high-quality for users. According to Apple, over 90% of App Store revenue goes to developers without Apple taking any commission. Apple spokesperson Emma Wilson said the company will work with the CNMC to address their concerns.
Bigger picture in Europe
This investigation is just one of several regulatory challenges Apple is facing in Europe. In March, the European Union fined Apple €1.84 billion for unfair practices related to music streaming apps. More recently, Apple agreed to let other companies use its contactless payment technology.
Earlier this year, the European Commission started looking into the App Store for potential violations of new competition rules known as the Digital Markets Act (DMA). The Commission found that Apple’s rules might break these new laws. They are also investigating a new fee Apple charges developers who want to access certain DMA benefits.
Developers argue that Apple makes it difficult for iPhone and iPad users to download and use third-party app stores, which goes against the DMA’s intentions. The European Commission will decide the outcome of these issues.
Future challenges
Apple’s antitrust problems aren’t just in Spain and the EU. The U.K. is planning new competition rules targeting Big Tech, which could bring more scrutiny and regulations for Apple. Additionally, some companies are considering legal action against Apple, leading to potential lawsuits.
Spain’s CNMC investigation adds to the growing list of antitrust challenges Apple faces in Europe. The results of this probe could have a big impact on how Apple operates its App Store and treats developers. As regulatory pressure builds, Apple’s App Store practices will remain a key issue for competition authorities and developers.
Featured image credit: Eray Eliaçık/Bing
