Apple faces a new antitrust challenge in Europe as Spain’s competition authority, the CNMC, announced the launch of an investigation into the App Store. The investigation centers on concerns that Apple might be imposing unfair trading conditions on developers distributing their software to iOS users through the App Store.
While specific details about the CNMC’s concerns remain sparse, the authority’s press release (translated from Spanish) states that “Apple may be engaging in anti-competitive practices by imposing unfair trading conditions on developers who use Apple’s App Store to distribute applications to users of Apple products.”
The probe by the CNMC could take up to two years to conclude. If the authority finds Apple in breach of competition rules, the company could face a penalty of up to 10% of its global annual turnover, potentially amounting to billions of euros.
Developer complaints about the App Store have been a persistent issue, focusing on the fees Apple charges for in-app sales and its payment technology. There have also been grievances about Apple’s app review process and general App Store governance, with accusations of arbitrary and unfair decisions.
Apple, on its part, asserts that it applies clear and consistent rules to iOS developers to ensure the App Store provides a safe and high-quality experience for users. The company claims that over 90% of App Store revenues (billings and sales) go to developers without Apple collecting any commission.
Responding to the CNMC investigation, Apple spokesperson Emma Wilson stated that the company will “continue to work with the Spanish Competition Authority to understand and respond to their concerns.”
In recent years, European antitrust authorities have become more proactive in challenging Big Tech, leading to increased regulatory scrutiny for Apple. This includes a €1.84 billion EU antitrust fine issued in March over anti-steering practices related to music streaming apps and a recent settlement requiring Apple to open up contactless payments on iOS.
The introduction of new competition rules in Europe is also causing additional challenges for Apple. Earlier this year, the European Commission launched an investigation into the App Store’s compliance with the Digital Markets Act (DMA), which includes severe penalties for non-compliance.
Last month, the Commission’s preliminary findings indicated that Apple’s anti-steering rules breach the DMA. Additionally, the Commission opened an investigation into Apple’s new Core Technology Fee (CTF), applied to developers who accept business terms allowing them DMA entitlements. This investigation is ongoing.
Furthermore, the EU is investigating Apple’s compliance with the DMA requirement to permit third-party app stores. Developers argue that Apple has made it difficult for iOS users to access these alternative marketplaces compared to the native experience of the App Store, which they claim contradicts the DMA’s intentions. The Commission will ultimately arbitrate this matter.
More regional controls may also be on the horizon, with the U.K. set to pass its own Big Tech-focused competition reform. With all this antitrust activity, litigation funders are closely watching Apple’s treatment of ecosystem developers.
