The National Commission for Sectoral Markets and Competition (CNMC) of Spain has launched an investigation into the App Store. Regulators suspect Apple of abusing its dominant position and imposing unfair conditions on app developers.
According to a statement from the CNMC, Apple’s actions related to the distribution of apps on its devices may violate Spanish competition law, as well as Article 102 of the Treaty on the Functioning of the European Union. The statement says that “Apple may engage in anticompetitive practices that impose unfair commercial conditions on developers who use the App Store to distribute their apps to users of its products.”
Apple’s Commission Structure and Allegations
Apple charges a 30% commission on all app developers who earn more than $1 million per year, and a lower commission of 15% for other developers. However, earlier this year, Apple announced alternative terms, which involve a lower commission in the range of 10% to 17%.
Under these alternative terms, developers are also required to pay an additional Apple Core Technology Fee of €0.50 per user for apps with more than 1 million annual installs. The Commission found these terms unfair and anti-competitive.
Apple’s Response and Future Developments
In response to the allegations, Apple denied the existence of unfair commercial terms in a recent statement to Reuters. A company spokesperson stressed that “Spanish developers, whatever form of terms they choose, compete on equal terms on the App Store and that the company will continue to cooperate fully with the Spanish competition authority to address any concerns it may have.”
The investigation is ongoing, and the CNMC will thoroughly examine Apple’s practices to determine whether they violate competition laws. This probe could potentially lead to significant changes in how Apple operates its App Store in Spain and possibly beyond, notes NIXSolutions. We’ll keep you updated on any developments in this case as they unfold.
The outcome of this investigation could have far-reaching implications for app developers and the broader app ecosystem. It remains to be seen how Apple will navigate these regulatory challenges and whether it will make further adjustments to its App Store policies in response to the concerns raised by the CNMC.