Competition and monopoly: Apple and its string of litigation – 03/22/2024 at 09:18


(GETTY IMAGES NORTH AMERICA/SCOTT OLSON)

Apple, attacked Thursday by the American government for anti-competitive practices linked to the iPhone, is also accused elsewhere in the world of abusing its dominant position.

Inventory of the main disputes:

Standoff against Epic Games

The video game publisher Epic Games has been scouring the courts and approaching the authorities for years to force Apple and Google to open their mobile operating systems, iOS and Android (installed on the overwhelming majority of smartphones), to retail stores. downloading alternative applications.

The goal: to no longer have to pay them a commission, which can go up to 30%, on user purchases.

Two years ago, a US federal judge asked Apple to let publishers offer alternative payment methods, while declaring that Epic had failed to prove a violation of competition law.

But Epic, joined by other internet giants like Microsoft and Meta, accuses Apple of not having respected this decision.

The Apple brand has in fact proposed a solution allowing it to collect from 12% to 27% on external purchases, which only represents a small reduction compared to what it charges on the App Store.

Epic Games also took Apple (and Google) to court in Australia over similar grievances. The trial opened Monday and is expected to last five months.

The South Korean precedent

As early as 2021, South Korea passed a law banning Apple and Google from forcing app developers to use the two tech giants’ payment systems, effectively declaring their lucrative monopolies on the App Store and the Play Store.

In the sights of the European Union

Seized by the music streaming platform Spotify, the European Commission imposed a fine of 1.84 billion euros on March 4 on Apple for non-compliance with EU competition rules on the music market in line.

According to Brussels, the Cuppertino firm applied restrictions to prevent application developers from promoting “alternative and cheaper offers outside the Apple ecosystem” to iPhone and iPad users, in order to favor its own service. Apple Music.

Apple has decided to appeal.

The situation has become more complex for the company since the entry into force in Europe on March 7 of the “Digital Markets Act” or DMA regulation.

This historic legislative arsenal forces six of the world’s largest technology companies, including Apple, to open their platforms to competition.

Apple has announced that its European users will soon be able to download applications directly via websites.

Distribution: convictions in France, Spain, Italy

In 2020, the French Competition Authority ordered Apple to pay a fine of 1.1 billion euros for “abuse of economic dependence” against its retailers in France.

The Paris Court of Appeal, however, reduced the sanction by two thirds in 2022, to 372 million euros.

Apple had announced that it had the right to appeal.

The Spanish competition authority imposed a global fine of 194 million euros on Apple and Amazon in 2023 for anti-competitive practices in the distribution of Apple brand products by Amazon Spain.

The Italian competition watchdog sanctioned Amazon and Apple in 2021, imposing a fine of 200 million euros for restricting access to the Amazon platform for certain resellers of Apple products.

The rebellion of British developers

The American giant is the target of proceedings worth 785 million pounds (914 million euros) in the United Kingdom for abuse of a dominant position on the prices charged to developers who use its application platform.

Russia and payments

In January 2024, Apple settled a fine of approximately $13.6 million to Russia for violating competition laws regarding in-app payments.

Apple had already paid Russia a fine of around 11.5 million euros in 2023 for abusing its dominant position in the iOS applications market.



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