EU, Which Previously Challenged Amazon, Now Launches Antitrust Investigation into Apple

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The European Union (EU) has launched a high-intensity antitrust investigation targeting Apple’s App Store and Apple Pay in the United States. This move comes just five days after the EU announced it would formally file a lawsuit against Amazon for antitrust violations, drawing attention to the background of targeting another American IT giant.

According to the Wall Street Journal (WSJ) on the 16th (local time), the EU Commission has recently begun a full-scale antitrust investigation into Apple’s App Store and Apple Pay. The investigation was triggered by complaints from European music streaming service company Spotify, e-book provider Kobo, and Rakuten, who protested that Apple charges a 30% commission on all subscriptions made through the App Store. These companies argue that "Apple collects excessive fees from app service providers on the App Store," and "Apple’s own apps inevitably have a price competitiveness advantage." Previously, Apple responded to such backlash by applying a 30% commission only for the first year to some companies, reducing it to 15% from the following year. Margrethe Vestager, Vice President of the EU Commission, stated, "We will closely examine whether Apple’s practices limit consumer benefits," adding, "This issue is very important in a situation where online and contactless payments are increasing due to the novel coronavirus (COVID-19)."

The EU Commission has also accepted complaints from European banks and financial service providers regarding Apple Pay. Banks and financial companies claim that Apple has engaged in unfair practices by restricting the Near Field Communication (NFC) function on iPhones and Apple Watches, making payments through their own apps impossible.

Recently, the EU has been consecutively launching antitrust investigations or lawsuits against American IT companies. It previously announced plans to sue Amazon for antitrust law violations and imposed a $9 billion fine on Google for similar charges. Industry insiders interpret the EU’s offensive against American IT companies as an effort to secure IT sovereignty. The intention is to raise barriers to restrict American corporate activities and foster IT companies within the EU. In February, the EU stated, "We lost the first battle, but we will take all measures to win the second battle over personal data."

This content was produced with the assistance of AI translation services.