Spain’s National Commission for Industrial Markets and Competition (CNMC) has initiated an investigation into the App Store. Regulators suspect Apple of abusing its dominant position and imposing unfair conditions on app developers.
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According to the CNMC, Apple’s actions related to the distribution of applications 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 states that “Apple may engage in anticompetitive practices that impose unfair commercial terms on developers who use the App Store to distribute their apps to users of its products.”
As a reminder, Apple charges a 30% commission to all app developers earning more than $1 million per year, and a lower 15% commission for other developers. However, at the beginning of the year, Apple announced alternative terms, the essence of which is a lower commission in the range of 10% to 17%.
However, if developers choose these alternative terms, they are also required to pay an additional Apple Core Technology Fee of €0.5 per user for apps with more than 1 million annual installs. The Commission found these terms to be unfair and anti-competitive.
In response to the allegations, Apple denied unfair business terms in a recent statement to Reuters. A company spokesperson stressed that “Spanish developers, whatever terms they choose, compete on a level playing field in the App Store, and that the company will continue to fully cooperate with the Spanish competition authority to address any concerns it may have.”