"Cross-market position of power" - Cartel Office wants to take a close look at Apple

The success of the big tech companies is causing growing suspicion.

Now the Federal Cartel Office also wants to take a closer look at Apple.

Munich - After Google, Facebook and Amazon, the Bundeskartellamt is also placing the technology group Apple under closer scrutiny.

The company "has a cross-market economic position of power," said Cartel Office head Andreas Mundt on Wednesday in Bonn.

With the step, the competition authorities can take stronger action against the iPhone manufacturer.

Apple stated that it intends to appeal against the Federal Cartel Office's decision.

"The classification of the Federal Cartel Office misrepresents the tough competition that Apple is exposed to in Germany," criticized a spokesman.

Cartel Office tightens supervision of digital companies

In 2021, the Cartel Office received new powers from the legislature to secure competition in the internet economy.

Since then, the competition authorities have been able to more easily identify a company that has a dominant market position and intervene to prohibit certain types of behavior.

On Wednesday, Mundt referred to the Californians' "outstanding positioning" and "outstanding resources" as justification for the stricter supervision of Apple.

With worldwide sales of around 400 billion dollars and almost 100 billion dollars in profits in the past fiscal year, the group is one of the top-selling and profitable companies in the world.

Cartel Office: Apple operates a comprehensive ecosystem

Apple occupies the entire value chain, from the iPhone to the iOS operating system to the App Store, the authority explained.

In this way, the group operates a “comprehensive digital ecosystem that is of great importance for competition not only in Germany, but also in Europe and worldwide”.

Practices that are harmful to competition would in future be “targeted” and, if necessary, prevented.

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The cartel office had already initiated proceedings against Apple in connection with the group's tracking rules.

The so-called App Tracking Transparency Framework from Apple links the tracking of user behavior for third-party providers in apps to certain requirements.

Many companies, such as Facebook parent Meta, whose offerings are financed by advertising, see this as a targeted restriction of their business model.

"The Bundeskartellamt is particularly investigating the initial suspicion that these regulations give preferential treatment to Apple's own offers," the authority said.

Apple rejects allegations by the Cartel Office

Apple itself stated that the Cartel Office's classification misrepresented the "tough competition that Apple is exposed to in Germany".

It also neglects the value of a business model "that focuses on user privacy and security," a spokesman said.

The group will work with the Federal Cartel Office to understand their concerns, but also plans to appeal the decision.