EU is investigating Apple Pay and App Store for breaking competition rules

The European Commission has launched two formal investigations into Apple’s business practices over a possible breach of Europe’s competition rules. 

One probe will investigate Apple’s App Store, while the other will look into the company’s Apple Pay payment system. 

The first investigation is a follow-up to earlier complaints by Spotify, and an (unnamed) e-book/audiobook distributor, who claimed that Apple’s App Store rules stifle competition in music streaming, e-book, and audiobook markets. 

“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. We need to ensure that Apple’s rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books,” Margrethe Vestager, who’s in charge of the EU’s competition policy, said in a statement. 

The EU will investigate several aspects of the App Store. Apple forces iOS developers to use its App Store, and then charges a 30-percent commission on all subscription fees. It also prevents companies letting users know of other ways of paying for their services outside of the App Store. 

In May of last year, Spotify CEO Daniel Ek said Apple’s rules make it impossible for Spotify to stay competitive. Apple answered by accusing Spotify of making misleading claims and wanting “all the benefits of a free app without being free.”

Notably, Apple published a press release on Monday with some App Store figures, claiming it facilitated over half a trillion dollars in commerce in 2019. “In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world,” Apple CEO Tim Cook said in a statement. 

As for Apple Pay, the Commission will be looking into whether Apple’s terms and conditions could “distort competition and reduce choice and innovation.” The investigation will also focus on the fact that Apple Pay is the only mobile payment solution that can access NFC tech on iOS mobile payment devices, as well as Apple allegedly restricting specific rival products from accessing Apple Pay. 

“It appears that Apple sets the conditions on how Apple Pay should be used in merchants’ apps and websites. It also reserves the ‘tap and go’ functionality of iPhones to Apple Pay. It is important that Apple’s measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices,” Vestager said in a statement. 

Mashable has contacted Apple for comment and we will update this article when we hear back.