The EC will investigate the mandatory use of Apple's own proprietary in-app purchase system, and restrictions on Apple Pay’s ‘tap and go’ function.
Background: In March 2019, Spotify moved a formal complaint with the European Commission, arguing that Apple’s platform is now ‘a gateway to the internet’ due to the 30% commission it charges on purchases made through Apple’s own payment system. In March 2020, the Japanese media and e-commerce group Rakuten made a similar complaint, related to the market for e-books. Apple has defended its practices, maintaining that it gives businesses the option to sell their services outside the App Store, and that it distributes apps for free. Apple notes that most apps do not pay a 30% commission, but those which do are able to sell their services to more consumers directly and can charge users for downloading their app upfront.
The EC begins a formal investigation: On 16 June 2020, the EC announced an investigation into the App Store rules. The EC will investigate the mandatory use of Apple’s own proprietary in-app purchase system (IAP) for the distribution of digital content, and restrictions on developers’ ability to inform users of alternative purchasing possibilities. Apple's competitors have either decided to disable the in-app subscription altogether, or have passed on the fee to consumers. In both cases, they were not allowed to inform users about alternative subscription possibilities. The IAP obligation also appears to give Apple full control over the relationship with customers of its competitors subscribing in the app.
Apple Pay is also under scrutiny: In parallel, the EC opened a second investigation concerning the Apple Pay system. Apple is limiting access to the Near Field Communication (NFC) functionality (‘tap and go’) to its own Apple Pay system on iPhones for payments in stores. The investigation will also focus on alleged restrictions of access to Apple Pay for specific products of rivals on iPhones and iPads.
