German antitrust authorities today confirmed that Apple has passed a special abuse control test. The designation is for 5 years.
“The company has a strong presence on all vertically related levels based on smartphones, tablets, smartwatches, proprietary operating systems, and the App Store, the only digital distribution platform for available apps and other software products. occupies a dominant, or at least a strong position in, both app publishers and users of Apple devices,” it wrote in a press release.
“Based on this tight, unique vertical structure and installed base of more than 2 billion active devices worldwide, Apple operates in a variety of ways at interrelated market levels and business areas, Long-term users in a complex ecosystem, which is related to the powerful forces that set the rules for third parties, especially app developers.”
This is the latest designation from the Federal Cartel Office (FCO), which has already determined that Amazon, Google, and Meta (Facebook) meet the criteria for market power. A study into Microsoft’s competitive position was also launched late last month. The investigation is still ongoing.
The country has passed advance updates to its domestic competition regime for 2021. This is intended to empower federal regulators to tackle Big Tech’s market power. The European Commission has designated so-called internet ‘gatekeepers’ and will apply a set of pre-emptive operating rules to their businesses as well later this year.
Commenting on Apple’s decision, President Andreas Mundt said in a statement: Federal Cartel OfficeAdded:
Because of Apple’s economic power across markets, competition creates a range of actions that are not well controlled. Based on mobile end devices such as the iPhone, Apple operates a broad digital ecosystem. This is very important for competition not only in Germany, but also in Europe and around the world. With its own products, his iOS and App Store, Apple has a key position not only in competition, but also in gaining access to the ecosystem and his Apple customers. This decision allows us to take specific action against anti-competitive practices and effectively prohibit them.
This designation means the FCO can act more quickly if it determines that the way Apple operates its platforms or products raises a competitive concern.
Last year, regulators began investigating Apple’s tracking rules and the App Tracking Transparency (ATT) framework, which governs tracking permissions for third-party apps running on iOS. The FCO said it was investigating initial suspicions that these rules could favor his Apple’s own offerings or hinder those of others.
“To date, no decision has been made to initiate further lawsuits against Apple,” the press release said.
We asked Apple for comment on the FCO’s decision.
