Spain Investigates 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).
[…]
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.
The CNMC started their investigation last week, alleging that Apple may be abusing their dominant position to impose unfair commercial conditions to app developers. This could be in violation of the Spanish Competition Act, as well as Article 102 of the Treaty on the Functioning of the European Union.
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Apple might have a problem if all the countries in the world declare the right to fine them 10% of their annual global turnover.
I’m not sure how that figure is reached given that each country’s regulator only has jurisdiction in their own territory.
Who regulates the regulators?
@Niall no such thing is going on here. The CNMC is investigating a violation of an EU rules (in these cases, there is also often talk of national laws, because e.g. EU directives are implemented by national laws).
Who regulates the regulators? Well, since this is about EU laws, you can fight these things all the way up to the European court of justice.
WRT why countries and the EU set the fines so high there are two main reasons.
The big tech companies don't mind paying a hundred million to make billions and billions. Small fees are laughed at. FAANG happily break the law.
There is no way that eu can look into every company and whether they advised by the law, so if the fine it's high though to seriously damage the company, they might self regulate.
This isn't the EU being high, this is American tech Giants being assholes.
This technique was invented by US trade sanctions btw
Apple is playing with fire by continuing to do this stuff in every country they can. Hopefully they get a fine big enough that they implement it everywhere just to head off future fines
They're running down the clock. Each month they can keep their tax in place means hundreds of millions of more in profit.
