Spain’s National Commission on Markets and Competition is opening an investigation into Apple’s App Store, citing concerns the iPhone maker could be imposing unfair trading conditions on developers who use its store to distribute their software to iOS users, reports TechCrunch.
Few details about the substance of the CNMC’s concerns have been made available, this is a translation (using Safari) of its press release: The National Commission on Markets and Competition (CNMC) investigates Apple Distribution International Ltd. and Apple INC. (Apple) for alleged conduct contrary to article 2 of Law 15/2007, of July 3, on the Defense of Competition (LDC) and 102 of the Treaty on the Functioning of the European Union (TFEU). (S/0005/24)
Specifically, Apple could be carrying out anti-competitive practices consisting of imposing unfair business conditions on developers who use the Apple group’s app stores (Apple App Store) to distribute applications to users of that company’s products.
The investigation was initiated ex officio, given the relevance that the economic activity that is carried out in the application stores is taking on in Spain.
If confirmed, the behaviors could constitute an abuse of position of dominance prohibited by article 2 of the LDC and 102 of the TFEU.
These practices could be considered as a very serious infringement of the LDC, which can lead to fines of up to 10% of the total global turnover of the infringing companies in the year prior to the imposition of the fine.
The initiation of this file does not prejude the final result of the investigation. A maximum period of 24 months is now opened for the investigation of the file and for its resolution by the CNMC.
If the CNMC confirms a breach of competition rules Apple could be on the hook for a penalty of up to 10% of its global annual turnover, worth billions of euros, notes TechCrunch.
This isn’t Apple’s first brush-up with the CNMC. In July 2021 the agency said it had initiated disciplinary proceedings against Apple and Amazon for possible restrictive competition practices. Per the CNMC at the time:
• Apple and Amazon could have agreed to trade restrictions on the Amazon website in Spain.
• This would affect the retail sale of Apple products by third parties and the advertising of competing Apple products.
• The companies’ behaviors could reduce competition in the Internet retail market for electronic products.
- In addition, they could strengthen Amazon’s position in the sector of providing marketing services to third-party retailers through online platforms (Marketplace) in Spain.
Specifically, the possible unlawful conduct would consist of an agreement between both groups that would include possible restrictions on the Amazon website in Spain ( https://www.amazon.es/ ) regarding:
- The retail sale of Apple products by third parties;
- Certain advertising of competing Apple products and certain campaigns directed at Apple customers by Amazon;
- Other commercial restrictions.
