Spain launches antitrust investigation into Apple’s App Store

Spain’s competition authority, Comisión Nacional de los Mercados y la Competencia (CNMC), has opened an investigation into Apple’s App Store, citing concerns that the tech giant may be imposing unfair trading conditions on software developers.

The investigation, announced on Wednesday, July 24, aims to determine whether Apple’s practices are anti-competitive and whether they specifically target developers who distribute software for iOS users.

The CNMC statement, translated from Spanish, suggests that Apple may be taking actions that limit fair competition, although details of those concerns were not disclosed.

The investigation could take up to two years and if the CNMC concludes that Apple has breached competition laws, the company could face fines of up to 10% of its global annual turnover, which could amount to billions of euros.

Developers have long criticized Apple’s App Store policies. Their complaints include Apple’s high fees for in-app purchases and the requirement to use Apple’s payment system. Developers have also pointed to problems with the app review process, claiming that Apple’s decisions can be arbitrary and unfair. These complaints have led to broader concerns about how the App Store is managed.

Apple, however, defends its approach, saying its policies are clear and consistent. The company says the policies are designed to provide users with a safe and high-quality experience. Apple also notes that more than 90% of App Store revenue goes directly to developers, and Apple does not take any commission on that revenue.

In response to the CNMC investigation, Apple spokeswoman Emma Wilson issued a statement confirming that the company intends to work with the Spanish Competition Authority to understand and address the concerns raised.

Current and upcoming legal challenges

The Spanish investigation joins a series of legal challenges Apple is facing in Europe. Earlier this year, the European Commission fined Apple €1.84 billion for anti-competitive conduct related to music streaming apps.

The Commission is also investigating whether Apple’s App Store complies with the Digital Markets Act (DMA), a new EU law aimed at ensuring fair competition. The DMA imposes rules on big tech companies and can result in fines of up to 10% of global revenue for non-compliance.

Last month, the Commission found that Apple’s rules restricting developers from directing users to alternative payment methods may violate the DMA. It is also investigating a new fee, known as the Core Technology Fee (CTF), that Apple charges developers who accept the terms of its DMA permissions.

The EU is also investigating whether Apple allows third-party app stores, as required by the DMA. Developers argue that Apple makes it harder for iOS users to access these alternative app stores, which could be contrary to the purpose of the DMA. The Commission will have to decide whether Apple’s actions are in line with the new rules.

Outside the EU, the U.K. is also planning new rules to regulate big tech companies, which could pose an additional challenge for Apple. The growing scrutiny of Apple’s business practices has caught the attention of litigation funders, who are watching these developments closely.

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