August 13, 2020

Apple Phone faces two EU Hostile to Rivalry

Apple Phone

Apple Phone faces two EU Hostile to Rivalry. Apple faces two European Commission tests into whether it has broke competition rules.

One test focuses on iPad and iPhones being limited to installing applications from the App Store. Among different limitations imposed on 3rd party developers.

The difference includes Apple Pay, with one issue being that other services can’t use the iPhone’s tap-and-go facility.

Apple said it was “disappointing” the EU was “advancing baseless complaints”.

What’s more, it accused companies that had raised prices against it of needing a “free ride”.

“Our goal is basic: for our users to access their best application or service, in a safe and secure environment.”

Apple is also under investigation in the US where the House Judiciary Committee is reported to have asked its CEO, Tim Cook, to appear with other tech leaders. To answer questions regarding anti-trust concerns.

Amazon has said that its CEO Jeff Bezos is happy to testify, as long as Mr. Cook and his partners at Facebook and Google also give evidence.

The last development comes days before Apple holds its annual developer’s meeting.

The investigation into Apple’s App Store generates from complaints raised by the music streaming service Spotify.

A year ago, it raised two specific concerns:

The main way developers can sell content and also subscriptions within an iOS application is through Apple’s system.

Distributers can’t tell users inside their applications that the same things can be purchased elsewhere – for example using the service’s site.

Apple typically charges applications a 30% cut of any deals. Even though that rate falls to 15% for the second. For later long periods of any subscriptions.

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Publishers often sell media and other digital goods at a lower cost when bought outside of their applications. However, customers can be unaware of the reality.

Apple Phone Applications

Since Apple just allows applications to be downloaded from its store and has repeatedly refreshed its mobile operating system to prevent “jailbreaks.” That goes around this standard, it is argued that 3rd parties have little option but to agree to its conditions.

The only option is to offer their services as online web-based services. Which can bound their functionality.

The Financial Times has reported that Rakuten’s online book shop Kobo contacted the European Commission with similar concerns.

Apple’s Enemy

“Apple’s anticompetitive conduct has intentionally disadvantaged competitors. Made an unlevel playing field. Denied customers for meaningful choice for a long time,” said Spotify in response to the latest development.

“We invite the European Commission’s decision to formally investigate Apple. Hoping they’ll act with urgency to guarantee fair competition on the iOS stage for all members in the digital economy.”

Payment

The Apple Pay investigation focuses on an innovation that allows iPhones and Apple Watches to make tap-and-go payments. It also lets users buy products using an application or site without giving their payment card details to the buyer.

The European Commission has concerns about the conditions imposed on services that have included the facility.

It also has reservations that alternative payment technology can’t utilize. The close to handling correspondence (NFC) that chips in Apple’s products to work with contactless payment terminals.

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