Japan will join forces with the U.S. and Europe to investigate an market abuses by the four Big Tech companies (which include Apple, Amazon, Facebook, and Google), the new head of its antitrust watchdog says, “a sign Tokyo will join global efforts to regulate digital platform operators,” according to Reuters.
Kazuyuki Furuya, chairman of Japan’s Fair Trade Commission (FTC), also said Tokyo could open a probe into any merger or business tie-up involving fitness tracker maker Fitbit if the size of such deals are big enough.
“If the size of any merger or business-tie up is big, we can launch an anti-monopoly investigation into the buyer’s process of acquiring a start-up (like Fitbit),” he told Reuters. “We’re closely watching developments including in Europe.”
On Oct. 6, the U.S. House Judiciary Antitrust Subcommittee said Apple, Facebook, Google, and Amazon “have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons.”
As outlined by CNBC, the subcommittee has released a 450-page report highlighting its findings. Included was a very critical statement about Apple: “In contrast, Apple owns the iOS operating system as well as the only means to distribute software on iOS devices. Using its role as operating system provider, Apple prohibits alternatives to the App Store and charges fees and commissions for some categories of apps to reach customers. It responds to attempts to circumvent its fees with removal from the App Store. Because of this policy, developers have no other option than to play by Apple’s rules to reach customers who won iOS devices.Owners of iOS devices have no alternative means to install apps on their phones.”
However, Apple begs to differ. In a statement to MacRumors the tech giant said that it strongly disagrees with the conclusions reached in the report in respect to Apple, and that Apple does not have dominant market share in categories where it does business.
Apple’s statement: “We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple. Our company does not have a dominant market share in any category where we do business. From its beginnings 12 years ago with just 500 apps, we’ve built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally. Hosting close to two million apps today, the App Store has delivered on that promise and met the highest standards for privacy, security and quality. The App Store has enabled new markets, new services and new products that were unimaginable a dozen years ago, and developers have been primary beneficiaries of this ecosystem. Last year in the United States alone, the App Store facilitated $138 billion in commerce with over 85% of that amount accruing solely to third-party developers. Apple’s commission rates are firmly in the mainstream of those charged by other app stores and gaming marketplaces. Competition drives innovation, and innovation has always defined us at Apple. We work tirelessly to deliver the best products to our customers, with safety and privacy at their core, and we will continue to do so.
The company says it plans to provide a more in-depth refutation of the allegations levied against it.
In the UK, The European Commission is investigating Apple for alleged anticompetitive practices involving the App Store and Apple Pay.
(Dennis Sellers has been covering the Apple industry since 1996. In addition to“Apple World Today,” he also runs his own freelance writing/editing service. If you want more info about the latter, email him at dennis.sellers@comcast.net.)
