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Apple faces twin attack as EU probes App Store and Apple Pay

  • The investigation is the latest in a growing list of EU inquiries into Silicon Valley’s major technology companies
  • In 2016, the EU’s antitrust regulators ruled that Apple pay US$14.7 billion in back taxes in Ireland

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Apple said the latest investigation by the European Commission is “advancing baseless complaints from a handful of companies” in the EU. Photo: Agence France-Presse
Bloomberg

Apple faces a two-pronged attack from European Union antitrust chief Margrethe Vestager amid concerns the US technology giant’s App Store and Apple Pay services squeeze developers and potential rivals.

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Just four years after hitting Apple with a record-breaking tax bill, Vestager has switched her attention to the iPhone maker’s market power.

The EU will review whether Apple’s App Store violates competition law by requiring developers to accept a 30 per cent commission for every sale on the company’s platform. Watchdogs will also examine how Apple limits “tap-and-go” functionality to its own Apple Pay product.

“It appears that Apple obtained a ‘gatekeeper’ role when it comes to the distribution of apps and content to users of Apple’s popular devices,” Vestager said in a statement on Tuesday. “We need to ensure that Apple’s rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books.”

European Commission antitrust chief Margrethe Vestager says the investigation seeks to ensure Apple’s rules does not distort competition in the EU. Photo: Reuters
European Commission antitrust chief Margrethe Vestager says the investigation seeks to ensure Apple’s rules does not distort competition in the EU. Photo: Reuters
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The investigation is the latest in a growing list of EU inquiries into Silicon Valley, which have led to criticism from US President Donald Trump. The EU last year wrapped up nearly a decade of inquiries into Google that racked up some US$9 billion in fines. An investigation into Amazon.com is set to escalate in the coming weeks.

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