Spain Launches Investigation Into Apple's App Store

[MacRumors]

Spain's competition authority has launched an investigation into Apple's App Store over potential anti-competitive practices that could result in hefty fines (via Reuters).

The National Commission of Markets and Competition (CNMC) this week announced a probe into the App Store, citing concerns that the company might be imposing unfair trading conditions on developers who distribute their applications through the platform. The investigation was initiated ex officio, reflecting the significant economic influence of app stores in Spain. Apple's practices could constitute an abuse of a dominant position, which is prohibited under Spanish competition laws and the Treaty on the Functioning of the European Union (TFEU).

If the CNMC's investigation confirms these allegations, Apple could face fines up to 10% of its global annual turnover, potentially amounting to billions of euros. The inquiry, which may take up to two years to conclude, adds to Apple's growing list of regulatory challenges in Europe. An Apple spokesperson said that the company "will continue to work with the Spanish Competition Authority to understand and respond to their concerns," reiterating that Apple believes its App Store rules are consistent and fair, with over 90 percent of revenues being paid to developers without commission.

The investigation in Spain follows a broader trend of increased regulatory scrutiny of major tech companies' control over digital marketplaces. In March, the European Commission fined Apple 1.84 billion euros for anti-steering practices related to music streaming apps. In June, the European Commission's preliminary findings suggested that Apple's App Store rules violated the Digital Markets Act (DMA) by preventing developers from steering consumers to alternative payment methods. The DMA, which seeks to ensure a more level playing field for smaller competitors in the technology industry, could impose fines of up to 10% of a company's global revenue for non-compliance.

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: Spain Launches Investigation Into Apple's App Store

 

[Apple Mac Daz]

Apple getting hit left, right and centre with potential fines

Waiting for the Apple should pull out of Spain comments 😂😂😂

 

[djcerla]

The ATM of Europe.

 

[AppliedMicro]

Let the fun begin ...again.

Waiting for the Apple should pull out of Spain comments

You beat me to it. 😂

The ATM of Europe.

Nothing to pay in fines if you play fair.

 

[siddavis]

Fines up to 10% global revenue? Because they run an App Store? Why do these always seem extreme? That’s like 2.5-3% of Spain’s GDP.

 

[AppliedMicro]

An Apple spokesperson said that the company "will continue to work with the Spanish Competition Authority to understand and respond to their concerns,"

An Apple spokesperson feigned ignorance in saying that the company "will continue to work with the Spanish Competition Authority to understand and respond to their concerns".


Without knowing the CNMC's exact concerns, I'd guess that Apple's restrictions on developers communicating and selling to consumers directly are the sticking point again. It's not that bloody hard to understand, unless you believe the App Store's business is similar and has the same market power as any random chain of grocery or supermarket stores.

As someone in another thread said: It will become very clear to Apple once the fines start raining. 💸🤑💸🤑💸🤑

 

[mystery hill]

Apple believes its App Store rules are consistent and fair

Do they consider this consistent?

iDOS 3 waiting for review (rejected)

litchie.com

They are refusing to allow iDOS, a retro emulator, on the App Store.

Appeal was rejected by App Review Board: "We understand that you might disagree with our findings. However, the app still provides emulator functionality but is not emulating a retro game console specifically. Only emulators of retro game consoles are appropriate per guideline 4.7." As to why UTM was approved but not iDOS, they wrote: "If you believe that you have identified apps that don't comply with the App Review Guidelines, you may use the Report an app form at any time to report trust and safety concerns for apps on the App Store."

 

[NagasakiGG]

Time for MacRumor’a comment bingo:

… if you don’t like what Apple does just buy Android
… Apple should leave EU
… You would do the same
… Apple knows better what you want than you

 

[UltimaKilo]

A great way to

Fines up to 10% global revenue? Because they run an App Store? Why do these always seem extreme? That’s like 2.5-3% of Spain’s GDP.

close the budget gap! 🤣

 

[ThailandToo]

The US is way behind in this. My motto is the more countries that stop Apple’s anticompetitive practices, the better off consumers will be.

 

[thejadedmonkey]

The problem is that instead of Apple having 1 app store with more relaxed rules, they will have 10 app stores with slightly different rules.

Because they don't want to give up that sweet sweet recurring revenue.

 

[nt5672]

At some point Apple just needs to allow 3rd party app stores world-wide. We know its right, Apple knows its right, the fight has been lost.

 

[MacFan23]

As someone in another thread said: It will become very clear to Apple once the fines start raining. 💸🤑💸🤑💸🤑

Fines starts raining in, Apple increases prices, consumer loses.

 

[bradman83]

Fines up to 10% global revenue? Because they run an App Store? Why do these always seem extreme? That’s like 2.5-3% of Spain’s GDP.

There is a famous incident from the 1980s where Ford decided it was cheaper to pay the fines and penalties in wrongful death lawsuits involving the Ford Pinto than to actually issue a recall to fix the problem.

Obviously the App Store is a far cry from life and death, but the lesson here is that if a penalty is too small for a massive company then it won't provide the proper incentive to fix the issue or stop the behavior. History is littered with other examples, especially around environmental contamination, where it was cheaper to pay the fine than to address the underlying issue.

Cynics here will claim "Waaah the evil goverment just wants poor innocent Apple's money!" but the key here is that the regulators in Spain or any other government are not expecting Apple to actually pay this fine, they're expecting the fine to be so steep that it will ensure Apple's compliance to avoid it.

 

[nicolas_s]

Europeans switching back and forth between "Apple is barely a thing in Europe" and "Apple has a dominant position in Europe" is a running gag at this point 😂

 

[Harry Haller]

Time for MacRumor’a comment bingo:

… if you don’t like what Apple does just buy Android
… Apple should leave EU
… You would do the same
… Apple knows better what you want than you

…Apple should just buy Spain
…Tim should be King of Spain
…Apple should offer $50 gift cards to Spaniards
…Apple should build a spaceship headquarters in Bilbao next to the Guggenheim

 

[scorpio vega]

Europeans switching back and forth between "Apple is barely a thing in Europe" and "Apple has a dominant position in Europe" is a running gag at this point 😂

It’s both sad and hilarious.

They couldn’t get iMessage so they had to find something trivial.

We know its right

Who’s we? I’m fine and have no complaints with iOS App Store.

Just because there are people who want to make iOS perform like android (instead of getting android) and how it works doesn’t mean you speak for all
Of us.

if you don’t like what Apple does just buy Android

There said it for you.

The US is way behind in this. My motto is the more countries that stop Apple’s anticompetitive practices, the better off consumers will be.

I wish ppl would stop trying to tell people what is better for consumers. Again i(like hundreds of millions of others) were fine.

It is not better for me and many others to have to go to multiple app stores to download an app because the developer wants to make money (same as apple) by not paying the app store. There is no benefit to having multiple App Store options vs a consolidated App Store.

 

[ryan102]

Apple hasn't realised that the EU isn't the US. In the US, you can do what you want providing it's within the text of the law.

In the EU, the laws are not only expected to be followed but they imply a way businesses should behave. The EU have mentioned previously about abiding by the the spirit of their laws to protect consumers.

If companies like Apple try and stick to the law but behave in a way to navigate around it then the EU generally don't react well as Apple is finding out.

 

[ThailandToo]

It’s both sad and hilarious.

They couldn’t get iMessage so they had to find something trivial.


Who’s we? I’m fine and have no complaints with iOS App Store.

Just because there are people who want to make iOS perform like android (instead of getting android) and how it works doesn’t mean you speak for all
Of us.



There said it for you.

I wish ppl would stop trying to tell people what is better for consumers. Again i(like hundreds of millions of others) were fine.

It is not better for me and many others to have to go to multiple app stores to download an app because the developer wants to make money (same as apple) by not paying the app store. There is no benefit to having multiple App Store options vs a consolidated App Store.

Competition drives innovation and is always better in free markets. You’re speaking contrary to reality.

 

[Shirasaki]

Do they consider this consistent?

iDOS 3 waiting for review (rejected)

litchie.com

They are refusing to allow iDOS, a retro emulator, on the App Store.

Well Apple is a dictatorship. So they can bend their own rules however they like without facing any consequences. Fair and consistent never exist in their dictionary.

 

[one more]

What I find strange is that the DMA regulations apply to Spain, as it is in the EU, so how can they accuse Apple twice for the same offence?

 

[wbeasley]

What I find strange is that the DMA regulations apply to Spain, as it is in the EU, so how can they accuse Apple twice for the same offence?

cash grab

 

[darngooddesign]

The EU has/is investigating Apple; Spain is looking for cash and their govt. employees are trying to justify their jobs.

 

[wbeasley]

perhaps all 27 EU members can make a claim of 10% each of global revenue and see what happens?

 

[scorpio vega]

Competition drives innovation and is always better in free markets. You’re speaking contrary to reality.

It’s an App Store. To download apps. It has nothing to do with innovating anything.