Apple's App Store Under Investigation in Colombia

[MacRumors]

Colombia's competition authority has opened a formal antitrust investigation into Apple, alleging that the company has abused its dominant position in the distribution of apps and purchases on iOS and iPadOS.

The Superintendence of Industry and Commerce (SIC) announced the probe yesterday (via MobileTime), stating that its Delegation for the Protection of Competition had reached a preliminary conclusion that Apple may have engaged in exclusionary practices that restrict free competition in the Colombian market.

The SIC case is focused on two primary concerns. First, the agency alleges that Apple contractually prevents developers from creating or operating alternative app stores on iPhones and iPads, ensuring that all software distribution takes place exclusively through the App Store. This restriction, regulators say, is designed to exclude potential competitors and preserve Apple's market dominance. The SIC noted that such clauses may amount to an abuse of a dominant position under Colombian law.

The second issue involves Apple's handling of in-app purchases. The SIC said developers are compelled to use Apple's proprietary In-App Purchase system, which applies commissions of 15% to 30% on each transaction. Apple also allegedly prohibits developers from informing users of cheaper alternatives outside the app, a practice known as anti-steering. In its announcement, the agency said these restrictions may result in "unjustified excessive costs" for Colombian consumers and create "artificial barriers" that deter new developers from entering the market.

The investigation will now proceed with evidence collection and analysis of Apple's conduct in Colombia. If the SIC determines that Apple has violated antitrust rules, the company could face sanctions of up to 10% of its turnover in the country, in addition to possible orders to amend its practices.

The Colombian probe reflects the growing international scrutiny of Apple's App Store. Earlier this year, the European Commission fined Apple €500 million under the Digital Markets Act for preventing developers from directing consumers to alternative payment methods. In the United States, a federal court recently found Apple in contempt of a previous antitrust ruling and prohibited the company from collecting commission on certain web-based purchases. Regulators in Brazil, Japan, and South Korea have also pressed the company on similar issues.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple's App Store Under Investigation in Colombia

 

[clayj]

Yet another government-led shakedown. How much are the Colombians going to charge Apple to keep doing business there?

 

[turbineseaplane]

“It’s always someone else’s fault” .. says the company, and its fans, getting targeted by one jurisdiction after another, worldwide.

 

[Manzanito]

Someday we'll get news like this and instead of comments like "apple should withdraw from that market" or "apple should buy that country", people will start to notice that maybe, just maybe, apple is wrong.

 

[SanderEvers]

Honest question. How many users does Apple have in Colombia?

 

[Shirasaki]

Someday we'll get news like this and instead of comments like "apple should withdraw from that market" or "apple should buy that country", people will start to notice that maybe, just maybe, apple is wrong.

But I believe what’s more likely to happen is Apple and all of its fans point fingers at everyone else but themselves even if the entire world rallies against Apple. You know, pointing fingers at others is always the path of least resistance.

 

[Shirasaki]

Honest question. How many users does Apple have in Colombia?

Apparently 52 million according to Wikipedia. Given the country’s GDP is a little under $20k, I’d say a couple hundred thousands at best. Probably much less than that. To Apple it is closing to rounding error territory.

 

[mikebenton]

Someday we'll get news like this and instead of comments like "apple should withdraw from that market" or "apple should buy that country", people will start to notice that maybe, just maybe, apple is wrong.

Apple is wrong about what? They've invested billions to build and maintain device hardware, operating system, and cloud infrastructure to make it work. The initial investment, and ongoing investment. So some small company wants to use what Apple built and continues to maintain to make revenue...but they supposedly don't owe Apple anything because? The whole Apple ecosystem is what - a public service? The entitlement never ends....

 

[WarmWinterHat]

Apple is wrong about what? They've invested billions to build and maintain device hardware, operating system, and cloud infrastructure to make it work. The initial investment, and ongoing investment. So some small company wants to use what Apple built and continues to maintain to make revenue...but they supposedly don't owe Apple anything because? The whole Apple ecosystem is what - a public service? The entitlement never ends....

Unless Apple gives me the hardware, for free, it's not a public service. I paid for the hardware, I own the hardware; not Apple. What I do with it, or install on it, after it leaves their possession should be none of their concern.

 

[ProbablyDylan]

Idk guys I'm starting to think Apple might be in the wrong.

Don't tell Tim I said that; I don't need him remote detonating my watch.

 

[555gallardo]

How much are the Colombians going to charge Apple to keep doing business there?

Ceasing wholesale discounts for that iconic colombian powder and gov thinks Apple’s going to love it. /s

 

[con2apple]

Apple is wrong about what? They've invested billions to build and maintain device hardware, operating system, and cloud infrastructure to make it work. The initial investment, and ongoing investment. So some small company wants to use what Apple built and continues to maintain to make revenue...but they supposedly don't owe Apple anything because? The whole Apple ecosystem is what - a public service? The entitlement never ends....

Even though it has been explained a thousand times:
Apple forces developers to use its own ecosystem.
The term “sideloading” had to be invented to describe this unique situation

Apple COULD actually offer a service. The App Store as a secure, trustworthy alternative to direct downloads.
But they don't.
Because they DON'T WANT to be customer-friendly or developer-friendly.
They just want to make money. That's why the apps aren't reviewed and every week a game is advertised that only serves to take money out of your pocket as a customer.

Stop telling the same old fairy tales.
Just because Apple has gotten you used to the idea that an App Store is “normal” doesn't mean that it is.
And Apple still provides the best example with its own Mac. There, the App Store is not mandatory.
Because Apple knows full well that they would no longer sell any Macs if they made the App Store mandatory.
Which proves their monopoly position in the smartphone market.

Just like Cook's statement: “Yes, then buy your mother an iPhone. Then she can use iMessage too.”

Watch Tim Cook's famous 'Buy your mom an iPhone' quip that caught the attention of the Justice Department

Tim Cook told someone to "Buy your mom an iPhone" in response to complaints about green messages and sending videos to Android users.

www.businessinsider.com

 

[jimbobb24]

“It’s always someone else’s fault” .. says the company, and its fans, getting targeted by one jurisdiction after another, worldwide.

Why is there fault? Some people want the iPhone to be a little computer (android) and some people want it to be an appliance (Apple). Appliances like the Nintendo Switch have not historically faced this scrutiny but computers do. Some people and govt are trying to force Apple to act like the iPhone is a computer. There is no fault...there is a fundamental disagreement about what is right. The market already has a computer approach. It's sad many jurisdictions are working to take away the appliance approach because I like that alot better. Devs are along for the ride because they see an opportunity to win a fight over money and everyone justifies their position as moral if it means they get the money.

 

[platinumaqua]

“It’s always someone else’s fault” .. says the company, and its fans, getting targeted by one jurisdiction after another, worldwide.

I bet when China starts doing the same investigation, Apple will roll over without much fightback.

 

[turbineseaplane]

I bet when China starts doing the same investigation, Apple will roll over without much fightback.

When Xi says “jump”

Tim says “how high!?”

 

[The_Gream]

And just think, Google just announced stricter restrictions on Android for apps. Hummm…

 

[Unregistered 4U]

Yet another government-led shakedown. How much are the Colombians going to charge Apple to keep doing business there?

And another region where Apple’s marketshare is well below 50%. One thing all these regions have in common is the complete inability to drive any local companies to create competing hardware/OS/App Store that they could fully control.

Their assumption is that American designed hardware/software will ALWAYS be available to them. With the current administration, that’s not a given. Any region worried about US companies that’s not working on replacing US companies aren’t getting the big picture.

 

[19callum93]

I’m sure Colombia has bigger problems than this… 😑

 

[Unregistered 4U]

I bet when China starts doing the same investigation, Apple will roll over without much fightback.

Thing is, China HAS a very vibrant and effective local market without US App Stores. If Apple disappeared tomorrow, some tiny portion of the market would be affected, but they’d just get a Chinese phone and be done with it. China hasn’t started an investigation and won’t start an investigation:
1. Because Apple’s marketshare is small and
2. Their “everything apps” run on any phone, there’s nothing special about Apple, and they command 50% and higher commissions, meaning they’re driving massive profits to the App Store owners without Apple. Probably the only region where non-iPhone profit share is higher than iPhone profit share.

Rejecting the sale of iPhones until Apple meets the demand is the only thing that works, but only China has the ability to do so. Other regions DEPEND heavily on Apple’s profit share so while they may complain and talk about fines and changes, they’ll NEVER restrict the sale of iPhones. China is the only market that can say “Support RCS on all new phones to be sold in the region,” and know that Apple will do it. China doesn’t threaten fines, just “do it or don’t do business here.”
Actually, I’d have to add Indonesia to that list. They told Apple they’d have to commit to the investment they said they would or no new iPhones. What did Apple do? Meet their demands. So, no, it’s not a China thing, it’s a “region that doesn’t require iPhones to be a part of their tech ecosystem” thing.

 

[Unregistered 4U]

Just like Cook's statement: “Yes, then buy your mother an iPhone. Then she can use iMessage too.”

Heh, fairy tales. Like “Then she can use iMessages too” that never happened

Tim Cook says ‘buy your mom an iPhone’ if you want to end green bubbles

Apple’s CEO isn’t feeling pressure to change iMessage

www.theverge.com

“I can’t send my mom certain videos.”
Yes, Tim could have said “Get your mom an Instagram account.” or had a tech support session educating the aged person asking the question on one of the countless other ways to send folks videos. Of course, in reality, the person asking the question was not 73, email has existed since they were born. YouTube has very likely existed since they learned to speak and they’ve likely used it to share videos with non-iPhone people many times before. Tim could have educated them about the iPhone feature that allows you to send an iCloud link to ANYone that will open the browser and play the video. But, that would quickly bore the audience, that’s not what those folks came there to hear. Everyone listening to the question have sent “certain videos” to folks that don’t own iPhones for quite awhile. It was an unserious question, so they got an unserious answer. “Buy your mom a iPhone” in this case, means:

“Ok, I’ve answered your ‘What would Steve say’ answer as politely as possible. If you’re actually here at the Code 2022 conference, a conference where people are recording this RIGHT NOW and will send it to a LOT of people’s Android phone owning friends and family today AND for years to come… like, if you’re THAT out of the loop and need that much help getting a video to your mom… I’m not going to run down all the options for you so, sure, buy her an iPhone. It WILL solve your problem, guaranteed.”

I’m on an iPad, but, unfortunately, I don’t know how to share videos to anyone without an iPad. /s

 

[Dr McKay]

Someday we'll get news like this and instead of comments like "apple should withdraw from that market" or "apple should buy that country", people will start to notice that maybe, just maybe, apple is wrong.

Nah, this will be a sizeable chunk of the MR userbase until the very end.

 

[wbeasley]

We only hear about Columbian Marching Powder normally.

Perhaps the cartels are moving into tech now?

Apple could release an extension to the "Find My..." system?

 

[Shirasaki]

some people want it to be an appliance (Apple)

Heh, iPhone iPad has gone so far from iPhone 1 that the whole “appliance” thing is far from what they are. Besides, general consensus says smartphone these days are pocket super computer and possibly the only computer among many users. It’s no longer about what “Apple wants”, it’s about what it is.

It's sad many jurisdictions are working to take away the appliance approach because I like that alot better

Well, you like it a lot better doesn’t mean other people also like it. While there seem to be decent enough folks liking iPhone being an advanced dumb phone, there are also enough people using iPhone as a pocket computer, just without keyboard and mouse attached to it all the time for obvious reasons.

 

[SFjohn]

Unless Apple gives me the hardware, for free, it's not a public service. I paid for the hardware, I own the hardware; not Apple. What I do with it, or install on it, after it leaves their possession should be none of their concern.

You’re correct you paid for the hardware & you can do anything you like with it. Put it in a blender so you can post the video online. What you don’t own is the software that makes it work. You have to agree to Apple’s terms (I’m sure you’ve throughly read through them?). What you paid for is a fancy brick. The software that makes it run, iOS is all Apple’s and they don’t sell that software to anyone. Try not agreeing to the terms & conditions your expensive new iPhone has and discover exactly just what you’ve paid for. 😂

 

[ApAx]

Ah yes, the fair and free nation of Colombia, leader of global human rights advocacy, shall liberate us all from Apple's tyranny of the masses!