Apple: EU competition auditors stop investigation into e-book rules

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 was closing its antitrust investigation into suspected anti-competitive behavior by the US company towards developers of e-books and digital audiobooks. The investigation started in June 2020 and focused on Apple's obligation to use its proprietary in-app purchase system and restrictions on the ability of competing developers of e-book and audiobook apps to point iPhone and iPad users to alternative, cheaper purchase options outside the App Store.

However, the Commission emphasizes that this is not an acquittal: "The closure of an investigation does not mean that the conduct in question is compatible with EU competition rules." The special part of the monopoly investigation had been stopped because an e-book and audiobook seller had withdrawn its complaint against Apple. In March, the Brussels government institution already imposed a record fine worth billions on Apple for abusing its dominant position in the market for the distribution of music streaming apps such as Spotify in a parallel case. Competition Commissioner Margrethe Vestager already made it clear in 2021 with regard to the App Store: "Apple has a monopoly." Providers of mobile applications would have to distribute them via the store and comply with "the mandatory and non-negotiable rules".

Stricter competition rules apply to Apple with the DMA

The Commission classified Apple as a "gatekeeper" at the beginning of September. Since March, the company has therefore had to make Messenger and app stores interoperable and may no longer give preference to its own products or services on its platforms. In June 2024, the executive body decided in this light to close its broader antitrust investigation into Apple in this area. It explains that, according to the DMA, the iPhone maker may not oblige app developers to use its proprietary payment system and may not impose monetary or other barriers to the control of their applications.

At the same time, the Commission assures that it will continue to monitor business practices in the technology sector –, including those of Apple – "under both the DMA and the competition rules". Apple is also facing trouble from the US: the US Department of Justice planned a large-scale antitrust lawsuit against the company in early 2024, which it filed in court shortly afterwards together with 16 US states. It mainly revolves around the Group's strategy of securing the dominance of the iPhone by networking it with other products and services and keeping users in its own ecosystem.

(nie)