Apple’s rigid App Store regulations have been the focus of European competition watchdogs for years. In one aspect, the antitrust watchdogs are now temporarily letting the iPhone manufacturer off the hook: The EU Commission announced on Friday that it would end its antitrust investigation into allegedly anti-competitive behavior by the US company towards developers of e-books and digital audio books. The review began in June 2020. It focused on Apple’s obligation to use its proprietary in-app purchasing system as well as restrictions on the ability of competing developers of e-book and audio book apps, iPhone and iPad users to alternative, cheaper purchasing options outside the App Store.
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But that is not an acquittal, highlights the Commission: “The termination of an investigation does not mean that the conduct in question is compatible with EU competition rules.” The special part of the monopoly review was stopped because an e-book and audio book seller withdrew its lawsuit against Apple. In March, in a parallel case, the Brussels government institution imposed a record fine worth billions against Apple for abusing its dominant position in the market for the distribution of music streaming apps such as Spotify. Competition Commissioner Margrethe Vestager made it clear in 2021 with reference to the App Store: “Apple has a monopoly.” Mobile application providers would have to sell them via the store and comply with “the mandatory and non-negotiable rules”.
With the DMA, stricter competition rules apply to Apple
The commission classified Apple as a “gatekeeper” in early September. The group has therefore had to make messengers and app stores interoperable since March and is no longer allowed to give preference to its own products or services on its platforms. In June 2024, in light of this, the executive body decided to close its broader antitrust investigation into Apple in this area. She explains that under the DMA, the iPhone maker cannot require app developers to use its proprietary payment system and cannot impose any monetary or other barriers on them to control their applications.
At the same time, the Commission assures that it will continue to monitor business practices in the technology sector – including Apple – “under both the DMA and competition rules”. Apple is also threatened with trouble in the USA: the Ministry of Justice there planned a large-scale antitrust lawsuit against the company at the beginning of 2024, which it filed with 16 US states in court a short time later. Above all, it revolves around the company’s strategy of securing the dominance of the iPhone by networking with other products and services and keeping users in its own ecosystem.
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**How might the Digital Markets Act (DMA)’s classification of Apple as a “gatekeeper” specifically impact the fees and commission structures currently in place within the App Store?**
## World Today News: Apple App Store Antitrust Scrutiny
This special edition of World Today News features an in-depth conversation with two experts regarding the recent developments in the EU’s antitrust investigation into Apple’s App Store practices. We are joined today by:
* **Dr. Sophia Ramirez**, Professor of Technology Law at the University of Brussels, specializing in EU competition law.
* **Mr. Thomas Johnson**, CEO of IndieDev Alliance, an organization advocating for independent app developers.
**Introduction:**
Welcome to our show. Recently, the EU Commission unexpectedly closed its antitrust investigation into Apple’s alleged anti-competitive practices within the e-book and audiobook market. However, this closure doesn’t signify an end to scrutiny of Apple’s App Store policies.
**Section 1: The Closure of the E-book Investigation**
* **Interviewer:** Dr. Ramirez, the EU Commission’s announcement surprised many. They cited the withdrawal of a lawsuit by an e-book seller as the reason for ending the investigation. What are your thoughts on this decision, and what implications does it have for smaller developers in the app market?
* **Dr. Ramirez:**
* **Interviewer:** Mr. Johnson, from the perspective of independent app developers, what are your initial reactions to the closure? Does it alleviate any concerns you have regarding Apple’s App Store dominance?
* **Mr. Johnson:**
**Section 2: The Digital Markets Act (DMA) and its Impact**
* **Interviewer:** The article highlights how the DMA, classifying Apple as a “gatekeeper,” introduces stricter competition rules. Can you elaborate on these new rules, Dr. Ramirez, and how they might reshape the relationship between Apple and app developers?
* **Dr. Ramirez:**
* **Interviewer:** Mr. Johnson, do you see the DMA as a significant step forward in leveling the playing field for independent developers? What specific changes do you hope to see as a result of this legislation?
* **Mr. Johnson:**
**Section 3: The Broader Legal Landscape and Future Developments**
* **Interviewer:** The article mentions a pending antitrust lawsuit against Apple in the United States. Dr. Ramirez, how do these US legal proceedings compare to the EU’s approach? Could we see differing outcomes that impact App Store practices globally?
* **Dr. Ramirez:**
* **Interviewer:** Mr. Johnson, what message do you have for independent developers navigating this evolving legal landscape? What steps can they take to protect their interests and ensure a fair marketplace?
* **Mr. Johnson:**
**Conclusion:**
The scrutiny of Apple’s App Store policies is far from over. While the EU Commission’s decision to close one investigation seems like a small victory for Apple, the implementation of the DMA and the ongoing US lawsuit signal a wider push for increased competition and fairer practices within the app ecosystem. Both Dr. Ramirez and Mr. Johnson have provided valuable insights into the complexities of this debate. We will continue to follow these developments closely and keep our viewers informed.
