The Federal Cartel Office has initiated proceedings against Apple, in which the cross-market significance of the company is being examined. Similar investigations had already been started against Facebook, Amazon and Google.
After Apple’s business practices have already been examined more closely in the USA and by the EU, the Federal Cartel Office is now following suit. As the Cartel Office writes in a press release , the “proceedings against the technology company Apple were initiated under the new antitrust regulations for digital corporations”. The office is also targeting the three other US giants Amazon , Facebook and Google.
In the first step of the two-stage process, you check whether Apple has a cross-market significance for the competition. In a possible further process, the office intends to take a closer look at specific behavior by Apple.
BUNDESKARTELLAMT WANTS TO TAKE A CLOSE LOOK AT APPLE’S PRACTICES
According to the Federal Cartel Office, an indication of cross-market significance can be given if the company has an ecosystem that extends across different markets. Such “positions of power are often difficult to attack by other companies”, according to the Cartel Office.
According to Andreas Mundt, President of the Federal Cartel Office, they now want to check “whether Apple has built a digital ecosystem across several markets around the iPhone with the proprietary iOS operating system”. In addition to iPhone, iPad, Mac and wearables like the Apple Watch or AirPods, Apple also offers device-related services. These include, for example, iCloud, AppleCare, Apple Music, Apple Arcade or Apple TV +. But the App Store itself should also be a focus of the investigation.
The Bundeskartellamt has received various complaints against Apple that indicate potentially anti-competitive practices. This includes, among other things, a complaint from the advertising and media industry due to Apple’s anti-tracking measures introduced with iOS 14.5 . Furthermore, it is criticized that Apple only preinstalled its own apps on the devices and thus prefers itself.
There are complaints in the App Store because of the need to use Apple’s own system for in-app purchases. Linked to this is the criticism of Apple’s commissions of 15 to 30 percent.
But the marketing restrictions in the Apple App Store are also an issue for the Federal Cartel Office. This complaint shows “parallels to the ongoing proceedings of the European Commission against Apple because of the restrictions on the Spotify streaming service and a corresponding preference for its own services”. The Cartel Office may therefore want to contact the European Commission and other competition authorities.
APPLE INDICATES IMPORTANCE IN GERMANY
Apple told MacRumors that they would have an “open dialogue about any concerns”. Furthermore, Apple refers to the importance for Germany as a location. The app economy supports more than 250,000 jobs in Germany.
