Apple, Google accused of anti-competitive practice in Mexico

Apple and Alphabet’s Google are facing a probe over anti-competitive practices in Mexico after the country’s former telecommunications chief filed a complaint, reports Reuters.

The article says the complaint was brought to Mexico’s telecommunications regulator IFT Friday by Mony de Swaan Addati, who once headed the former telecommunications federation that was later replaced by IFT.

His complaint accuses Apple and Google of “completely inhibit(ing) competition” by “taking advantage of their monopoly in app stores to tie use of their own payment processing systems for in-app purchases.”

In his online statement, de Swaan Addati said Google’s Play store and Apple’s store charge 15%-20% commission, forcing price inflation.

This is the latest in a round of anti-competitive claims against Apple

In March, Apple faced a new multi-billion euro lawsuit out of The Netherlands by the Consumer Competition Claims Foundation that claims the tech giant overcharges users who purchase apps and in-app subscriptions through the App Store. 

The lawsuit also accused Apple of partaking in “market dominance” and “anti-competitive practices.” On its website, the Consumer Competition Claims Foundation, a non-profit organization, has this to say: Consumers have been overcharged 5 billion euros for their app and in-app purchases and should demand a refund. Apple has reaped this excess profit by abusing its market dominance at the expense of European consumers. 

By using anti-competitive practices, Apple has been able to charge excessively high prices and impose restrictive conditions. Apple excluded all competition and withheld choice for consumers on their App-store and in-app purchases. 

Last year United Kingdom’s Competition and Market Authority (CMA) launched an investigation into Apple’s alleged anti-competitive behavior.

The problem, per the CMA: “In addition to designing, manufacturing and marketing electronic devices such as smartphones and tablets, Apple also operates the App Store. This is the only way for developers to distribute third-party apps on Apple’s iPhones and iPads, and the only way for Apple customers to access them.

In November 2021, Apple and Amazon were fined a total of more than 200 million euros (about $225 million) for alleged anti-competitive cooperation in the sale of Apple and Beats products, reports Reuters.

As you might expect, both companies plan to appeal. From Reuters: To ensure our customers purchase genuine products, we work closely with our reseller partners and have dedicated teams of experts around the world who work with law enforcement, customs and merchants to ensure only genuine Apple products are being sold,” Apple said, denying any wrongdoing.