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The closure of this investigation does not mean Apple’s conduct is complaint with EU rules, the Commission said.
In 2020, an e-book and audiobook distributer raised concerns with the European Commission regarding Apple restricting the ability of competing e-book and audiobook app developers from informing iOS users of alternative and cheaper products available outside Apple’s App store.
However, following the withdrawal of the 2020 complaint by the e-book distributor, the Commission announced last Friday (22 November) that it has decided to close its antitrust investigation into the iPhone-maker concerning this specific matter.
Although, it clarified that the closure of this investigation does not mean that Apple’s actions are compliant with EU competition rules. “The Commission will continue to monitor business practices in the European tech sector, including those of Apple, both under the DMA and competition rules,” the Commission said.
The EU opened a number of antitrust investigations into Apple in June 2020 following complaints raised by the e-book distributer as well as similar complaints raised by the audio streaming platform Spotify to assess whether Apple’s rules for app developers – which renders it mandatory for them to use Apple’s own proprietary in-app purchase system and restricting their ability to inform users of alternative services – is compliant with EU competition laws.
“While Apple allows users to consume content such as music, e-books and audiobooks purchased elsewhere also in the app, its rules prevent developers from informing users about such purchasing possibilities, which are usually cheaper,” the Commission said in 2020.
Concluding one of the investigations in March of this year, the Commission found that Apple had abused its dominant position in the music distributor market in the Apple App store, finding in particular that it applied restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app. As a result, Apple was fined €1.8bn.
The Commission also ordered Apple to remove the anti-steering provisions and to refrain from similar practices in the future.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” said Margrethe Vestager, head of EU competition policy, in a statement in March.
“It has impacted millions of European consumers, who were not able to make a free choice as to where, how and at what price to buy music streaming subscriptions.”
Aligning with the EU Digital Markets Act (DMA) that came into effect this March, Big Tech companies including Apple and Google made changes to their services to comply with the law.
Apple, in its iOS 17.4 update earlier this year complied with DMA regulations and included supports for alternative app stores – meaning that users in the EU can install alternative app marketplaces on their iPhone. However, this feature is not available outside of the region.
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