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The CPC has given Apple one month to respond and propose ways to address the issue.
The EU consumer protection watchdog has cracked down on Apple’s “unlawful” geo-blocking practices, and has asked the iPhone maker to address the practices that go against its Single Market policy guaranteeing the free movement of goods and services throughout the region.
A Europe-wide coordinated investigation conducted by the Consumer Protection Cooperation (CPC) Network concluded yesterday (12 November), and found that many of Apple’s services – namely, the App Store, Arcade, Music, iTunes Store, Books and Podcasts – employ prohibited geo-blocking practices, discriminating European consumers based on where they live.
Coordinated by the European Commission, the network’s action against Apple is led by national consumer authorities from Belgium, Germany and Ireland’s Competition and Consumer Protection Commission.
The network found that Apple has different interfaces for different countries in the EU and restricts consumers from accessing the interface versions from other EU countries outside of where their Apple account is registered to.
Moreover, the investigation also found that consumers face “significant challenges” when attempting to change this – which is not allowed under the EU’s anti-geo-blocking rules.
According to the network, Apple customers can only make payments using means, such as credit or debit cards, issued in the country where their Apple account is registered, and that Apple does not allow consumers to access a different version of the App Store available in other EU/EEA countries – meaning that users are not allowed to download apps offered in other countries.
In the announcement yesterday, the network gave Apple one month to reply to its findings and explain how it will address the geo-blocking issues raised by the watchdog, bringing it in line with EU policies.
Depending on Apple’s reply, the network may enter into a dialogue with the company. However, if Apple fails to address the network’s concerns, national authorities could take enforcement measures to ensure compliance.
“The discrimination of consumers based on their nationality or place of residence is against Union law, therefore unacceptable,” said Didier Reynders, the EU Commissioner for Justice.
“Consumers must be able to reap the full benefits of the Single Market and should not face any obstacles while using a specific service and traveling around the EU.
“The Commission urges Apple to bring its practices in line with EU rules against the unjustified geo-blocking of consumers,” he said.
The CPC Network brings together 27 EU member states along with Norway and Iceland to investigate and take actions against cross-border infringements of EU consumer protection laws.
The Geo-blocking Regulation was adopted in 2018 to ensure better access to goods and services for individuals and businesses across the EU, and applies to all app stores operating in the EU Single Market.
Earlier this year, Meta came under fire for its ‘pay or consent’ business model for breaching EU consumer laws. EU consumer bodies have said that the model is a smokescreen that aims to justify collection of data, which they say is illegal under the GDPR.
Yesterday, the company announced a change to the model, planning to “significantly” reduce the price of subscription for no ads.
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