Monday, September 16, 2024

Apple under investigation in Spain over treatment of App Store developers

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Spanish antitrust officials launched an investigation into Apple, saying the iPhone maker might be imposing unfair conditions on developers who rely on its App Store to distribute their applications.

The country’s National Markets and Competition Commission, known as CNMC, said it is probing Apple’s treatment of developers to ascertain whether the tech giant is engaging in anti-competitive practices in breach of Spanish and European Union legislation.

The CNMC has the power to fine companies up to 10% of their global sales for the year before a fine is imposed. Apple reported nearly $383.29 billion in sales in the fiscal year ended Sept. 30, 2023, meaning it faces a multi-billion-dollar fine if CNMC officials conclude it stifled competition.

“Today, Spanish developers of all sizes compete on a level playing field on the App Store,” an Apple representative said. “Apple will continue to work with the Spanish Competition Authority to understand and respond to their concerns.”

The Spanish investigation adds to a growing list of headaches that Apple is facing in Europe.

Last month, the EU said the company might be in breach of its digital-competition law, alleging that the company’s App Store wasn’t allowing developers to freely direct customers to alternative ways to make purchases.

If EU officials determine that the company broke the bloc’s Digital Markets Act, Apple could be fined up to 10% of its worldwide revenue.

Write to Mauro Orru at mauro.orru@wsj.com

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