Spain Launches Investigation Into Apple's App Store

Spain's competition authority has launched an investigation into Apple's App Store over potential anti-competitive practices that could result in hefty fines (via Reuters).

iOS App Store General Feature Black
The National Commission of Markets and Competition (CNMC) this week announced a probe into the ‌App Store‌, citing concerns that the company might be imposing unfair trading conditions on developers who distribute their applications through the platform. The investigation was initiated ex officio, reflecting the significant economic influence of app stores in Spain. Apple's practices could constitute an abuse of a dominant position, which is prohibited under Spanish competition laws and the Treaty on the Functioning of the European Union (TFEU).

If the CNMC's investigation confirms these allegations, Apple could face fines up to 10% of its global annual turnover, potentially amounting to billions of euros. The inquiry, which may take up to two years to conclude, adds to Apple's growing list of regulatory challenges in Europe. An Apple spokesperson said that the company "will continue to work with the Spanish Competition Authority to understand and respond to their concerns," reiterating that Apple believes its ‌App Store‌ rules are consistent and fair, with over 90 percent of revenues being paid to developers without commission.

The investigation in Spain follows a broader trend of increased regulatory scrutiny of major tech companies' control over digital marketplaces. In March, the European Commission fined Apple 1.84 billion euros for anti-steering practices related to music streaming apps. In June, the European Commission's preliminary findings suggested that Apple's ‌App Store‌ rules violated the Digital Markets Act (DMA) by preventing developers from steering consumers to alternative payment methods. The DMA, which seeks to ensure a more level playing field for smaller competitors in the technology industry, could impose fines of up to 10% of a company's global revenue for non-compliance.

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Top Rated Comments

NagasakiGG Avatar
8 months ago
Time for MacRumor’a comment bingo:

… if you don’t like what Apple does just buy Android
… Apple should leave EU
… You would do the same
… Apple knows better what you want than you
Score: 36 Votes (Like | Disagree)
ThailandToo Avatar
8 months ago
The US is way behind in this. My motto is the more countries that stop Apple’s anticompetitive practices, the better off consumers will be.
Score: 29 Votes (Like | Disagree)
Apple Mac Daz Avatar
8 months ago
Apple getting hit left, right and centre with potential fines

Waiting for the Apple should pull out of Spain comments ???
Score: 27 Votes (Like | Disagree)
bradman83 Avatar
8 months ago

Fines up to 10% global revenue? Because they run an App Store? Why do these always seem extreme? That’s like 2.5-3% of Spain’s GDP.
There is a famous incident from the 1980s where Ford decided it was cheaper to pay the fines and penalties in wrongful death lawsuits involving the Ford Pinto than to actually issue a recall to fix the problem.

Obviously the App Store is a far cry from life and death, but the lesson here is that if a penalty is too small for a massive company then it won't provide the proper incentive to fix the issue or stop the behavior. History is littered with other examples, especially around environmental contamination, where it was cheaper to pay the fine than to address the underlying issue.

Cynics here will claim "Waaah the evil goverment just wants poor innocent Apple's money!" but the key here is that the regulators in Spain or any other government are not expecting Apple to actually pay this fine, they're expecting the fine to be so steep that it will ensure Apple's compliance to avoid it.
Score: 26 Votes (Like | Disagree)
AppliedMicro Avatar
8 months ago
Let the fun begin ...again.

Waiting for the Apple should pull out of Spain comments
You beat me to it. ?

The ATM of Europe.
Nothing to pay in fines if you play fair.
Score: 23 Votes (Like | Disagree)
siddavis Avatar
8 months ago
Fines up to 10% global revenue? Because they run an App Store? Why do these always seem extreme? That’s like 2.5-3% of Spain’s GDP.
Score: 20 Votes (Like | Disagree)