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Apple in the crosshairs: App Store investigation launched in Spain

by Milan
July 29, 2024
in News
Apple App Store Spain

Image: Apple

The Spanish antitrust authorities have opened an investigation into Apple's App Store. The investigation focuses on whether Apple is abusing its dominant position to impose unfair terms and conditions on app developers. This investigation could have significant implications for the way the App Store works and for the future of the digital market in Spain.

In today's digital era, the App Store plays a central role in the distribution of software and digital services. For many developers, access to Apple's platform is essential to making their apps available to a wide audience. But this dependence also brings challenges, especially when it comes to the terms and conditions that Apple imposes on developers.

investigation by the CNMC

The National Commission for Markets and Competition (CNMC) in Spain has launched a comprehensive investigation into the App Store initiatedThe authority is investigating whether Apple is abusing its dominant market position to impose unfair conditions on app developers. According to the CNMC, this could constitute a violation of Spanish competition law and Article 102 of the Treaty on the Functioning of the European Union.

allegations against Apple

Apple traditionally charges a commission of 30% % from all App Store developers earning more than $1 million per year. Smaller developers pay a lower commission of 15% %. In January this year, Apple announced new terms for EU developers that allow a lower commission of 10-17% % provided they use the App Store payment processor. However, apps with more than 1 million annual installs will be subject to a technology fee of €0.50 per user.

statement from Apple

In a statement opposite Apple has denied allegations of unfair terms and conditions, according to Reuters. An Apple spokesperson stressed that "Spanish developers of all sizes compete on equal terms in the App Store" and that the company "will continue to work with the Spanish competition authority to understand and respond to their concerns."

Possible consequences

If Apple is found to have violated Spanish competition law, the company could face a fine of up to 10% of its profits from the year before the penalty was imposed. Earlier this year, Apple was already fined $2 billion by the European Union. The CNMC has up to 24 months to complete its investigation and make a final decision.

App Store: Possible consequences for Apple and the developer world

The ongoing investigation of the App Store by the Spanish antitrust authorities highlights the growing tensions between large technology companies and regulators around the world. The results of this investigation could have far-reaching consequences for Apple and the entire app development community. It remains to be seen how the situation develops and what measures the CNMC will ultimately take. (Image: Apple)

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