Apple: Federal Cartel Office examines Apple's market position

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In the sights of the cartel guards: the big four of the digital industry

Photo: DENIS CHARLET / AFP

After Facebook, Google and Amazon, the Federal Cartel Office has now also initiated proceedings against the iPhone manufacturer Apple in accordance with the new regulations for digital corporations.

As the authority announced on Monday in Bonn, it is about examining a cross-market significance.

A clue for such a position could be "an ecosystem extending across different markets."

Corresponding positions of power are often difficult to attack by other companies, explained the competition watchdog.

"We will now check whether Apple has set up a digital ecosystem around the iPhone with the proprietary iOS operating system over several markets," explained the President of the Cartel Office, Andreas Mundt.

The focus is on the App Store

Apple manufactures tablets, computers and so-called wearables - for example smartwatches - and at the same time sells "a number of device-related services," Mundt explained.

In addition to various hardware products, the Services division includes the App Store, iCloud, AppleCare, Apple Music, Apple Arcade, the Apple TV + streaming service and other services.

"In addition to the position of the group in these areas, we will also deal with the extensive integration across several market levels, the technological and financial resources of the company and its access to data," explained Mundt.

One focus of the investigation will be on the operation of the app store, as it enables Apple in many cases to influence the business activities of third parties.

The office is also investigating other complaints

The procedure is based on new rules in competition law that have been in force since January.

A central component is the modernization of abuse control - the supervisory authorities can now intervene earlier in the event of violations by large digital corporations and prohibit anti-competitive practices.

The last time they were investigated against Facebook at the end of January and against Amazon and Google in May.

In the case of Apple, the antitrust authorities also intend, based on the first case, to “take a closer look” in a possible further case, as the authority further explained.

In this regard, there were "various complaints" about potentially anti-competitive practices.

This also includes an association complaint from the advertising and media industry, which is directed against Apple's tracking restriction of users in connection with the introduction of the iOS 14.5 operating system.

The background to this is that the central associations of the German media, internet and advertising industries filed a complaint against the iPhone manufacturer with the Federal Cartel Office at the end of April.

In addition, according to the Bonn authority, the compulsion to use Apple's own system for in-app purchases (IAP) and the associated commission rate of 30 percent are also criticized by app developers.

This is also the central point in the dispute between Apple and the developer of the popular video game "Fortnite", Epic Games, which is currently being heard in court in the USA.

mak / AFP