Antitrust pressure on Apple continues to mount. Germany’s Federal Court has rejected the company’s appeal, upholding the right of EU regulators to impose restrictions and set new rules for the App Store.
Источник изображения: Mariia shalabeeeva / Unsplash
The lost appeal is the latest twist in a years-long battle between Apple and German regulators over control of the app store and its impact on competition. Germany’s national competition authority (Bundeskartellamt) had insisted on its right to directly demand changes to the App Store. Now, the court has upheld that right, giving the agency the power to directly dictate Apple’s app store rules and policies, 9to5Mac reports.
The trial began after a new law came into force that expanded the powers of Germany’s antitrust authorities. The regulator said Apple was controlling the iPhone app market, limiting competition, and demanded restrictions on the company’s activities. Apple appealed the decision, but the court sided with the agency.
The main factor in the dispute was the difference between the antitrust laws of the United States and Europe. In particular, in America, the authorities must prove not only a violation of competition, but also actual harm to consumers, such as rising prices. In Europe, it is enough to simply identify the possibility of harm and take action at an early stage, before that harm actually occurs.
In this case, the German regulator concluded that Apple’s App Store policy created such risks, and the court upheld that position, noting that Apple does indeed play such a key role in the market that it cannot help but give regulators the right to intervene. “The court’s decision was almost inevitable,” 9to5Mac notes. “Apple has argued that it does not dominate the mobile app market as a whole, but European regulators believe that its monopoly on iPhone apps is the key factor.”
It is unclear what rules might be introduced. Current EU law currently requires Apple to allow third-party app stores to operate, which the company has already begun to do. However, the Bundeskartellamt could impose additional restrictions, such as on Apple’s commission fees. Germany would thus be the first EU national regulator to directly intervene in the App Store, setting a precedent for other countries.