The European Union has opened investigations into Apple's App Store, as well as its payment platform, with the company accused of stifling competition. The tech giant says the case rests on "baseless" claims.
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European Union authorities on Tuesday said they had opened antitrust investigations into Apple's App Store and Apple Pay over concerns that the company was guilty of stifling competition.
The European Commission said it launched an official investigation of Apple Pay after allegations that the tech giant had, in some cases, refused to allow access to the payment system. Apple was also accused of limiting access for some firms to the "tap and go" function on iPhones.
EU Executive Vice President Margrethe Vestager said "it appears that Apple obtained a 'gatekeeper' role when it comes to the distribution of apps and content to users of Apple's popular devices."
Vestager said it appeared that Apple had set conditions on how Apple Pay should be used in merchants' apps and websites. "It is important that Apple's measures do not deny consumers the benefits of new payment technologies,"she added.
EU: the great antitrust busters
Don't be evil? The EU seems to agree, particularly going by the manner in which it fines the big US software companies when they fall foul of the bloc's laws. Since 2004, penalties for transgressions have risen markedly.
Image: picture alliance/dpa/C. Dernbach
Microsoft tread the Windows ledge
In 2004, the European Commission finished a five-year investigation into Microsoft and concluded that the US tech giant had exploited a monopoly on PC operating systems. The fine was €497 million ($579 million). Within 90 days, Microsoft was obliged to offer a Windows product without its 'Mediaplayer' product.
Image: Imago/H. Rudel
Another blow for Bill and Co
In 2007, the European Commission went for Microsoft again, this time imposing a fine of €900 million. The reason was that they reckoned Microsoft had charged competitors unjustifably high license fees to avail of technical information. This violated previously agreed EU requirements.
Image: picture-alliance/AP Photo/T.S. Warren
Intel Inside Job
In 2009, a record fine was issued with the breaking of the €1 billion barrier. This time, it was the chipmaker Intel, fined €1.06 billion in what was part of a near-decade long dispute over cartel activity. The EU said that Intel had abused its market position by obliging clients such as Saturn and Media Markt to sell PCs made with Intel chips.
Image: Imago/Xinhua
Just browsing, and just one browser...
In 2013, Microsoft had to dole out another €561 million to the EU. This time, the company was accused of failing to offer an adequate choice of browser to its customers, as it had promised it would a few years earlier. The Commission said that from May 2011 to July 2012, Microsoft had failed to do this.
Image: picture-alliance/dpa/M. Balk
To Infineon - €100 million - and beyond!
In 2014, the European Commission slapped a fine of €138 million on four different chip manufacturers, including the Munich-based company Infineon, which had to pay the vast majority of the total amount. Their sin was that between September 2003 and September 2005, they had engaged in price controlling activity with the likes of Philips and Samsung.
Image: picture-alliance/dpa/J. Büttner
Ok Google, stop manipulating search results
In 2017, Google was ordered to pay a whopping €2.42 billion fine into the EU coffers, with the Commission accusing the search kingpin of manipulating online shopping searches, abusing its market position as a result. The specific transgression was that Google had prioritised its own services' price comparisons in search results ahead of its competitors.
Image: picture alliance/dpa/S. Hoppe
Qualcomm eats the forbidden Apple
In 2017, Qualcomm, a chip supplier of US behemoth Apple, had to pay €997 million to the EU. The accusation was that the US company had been paying a fortune to Apple in order to thwart its own competitors. It meant that Qualcomm had abused an already dominant position to exclude other LTE chipset makers from the market.
Apple criticized the investigation and said it was based on groundless complaints from a few companies.
"It's disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don't want to play by the same rules as everyone else," the iPhone maker said in a statement.
"We don't think that's right — we want to maintain a level playing field where anyone with determination and a great idea can succeed."