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).

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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