Competition Authority launches investigation against Apple

The Competition Authority launched an investigation against Apple for requiring app developers to use its own payment system.

Newstimehub

Newstimehub

6 Jun, 2024

The Competition Authority launched an investigation against Apple for requiring app developers to use its own payment system.

The Competition Authority, which is conducting a Mobile Ecosystems Sector Review on the sector structure and competition issues related to mobile smart devices and software for them, took action on suspicions regarding Apple’s contracts with app developers and restrictions on their payment systems.

As part of its investigation, the Authority found that app developers were prevented from providing information about different payment channels, such as their own websites.

The investigation will first examine whether this prohibition restricts their ability to access lower prices.

It was found to have earned 30 percent commission income from sales

According to Bloomberg’s information from the Competition Authority, the agency also found in its study that the inclusion of links to alternative non-app channels was blocked.

Accordingly, the Competition Authority will also examine whether Apple is eliminating the freedom of choice of app developers by requiring its own payment system and preventing other payment systems from entering the Apple ecosystem.

The Authority also found that Apple earns 30 percent commission income from sales through its proprietary payment system used to sell in-app content. With its decision taken on May 21, the Authority launched an investigation into the company to determine whether it violated competition law by allowing the use of alternative payment systems in the App Store and imposing anti-steering provisions on mobile app developers.