If things get worse in the European Union so that Apple can continue to freely offer its products and services, Now it is USA from the National Commission of Markets and Competition (or CNMC from now on) who opened an investigation into the App Store for possible anti-competitive behavior on the Apple platform.
The CNMC launched its investigation last week, alleging that Apple may be abusing its dominant position to impose unfair commercial conditions on app developers. This could violate the Spanish Law on the Defense of Competition, as well as Article 102 of the Treaty on the Functioning of the European Union. Apple traditionally charges a 30% commission to all developers on the App Store earning more than $1 million per year, and a lower commission of 15% to smaller developers. Something that many developers have complained about, raised their voices (see Epic with Fortnite) and it led to a European Union regulation requiring Apple to allow the installation of apps from third-party stores or websites (although there is no main reason).
On the other hand, in January of that same year, Apple announced alternative terms for EU developers, allowing them to opt for a lower commission of 10-17% (plus 3% if they decide to use the App Store payment processor). Additionally, if a developer opts for these alternative terms, a basic technology fee of $0.50 per user is charged for apps with more than one million annual installations.
Apple has denied allegations of unfair trading conditions in a statement to Reuters. An Apple spokesperson said that “Spanish developers of all sizes compete on an equal footing in the App Store” and that the company “will continue to work with the Spanish competition authority to understand and address their concerns.” However, earlier this year, the European Union fined Apple $2 billion, and If Apple is found to have violated Spanish competition law, it could face fines of up to 10% of its profits for the year preceding the imposition of the fine.
We will see how this investigation evolves from now on. CNMC has up to 24 months to investigate to Apple and make a final decision. What a view for those from Cupertino in Europe. Terrible.
