Keep Up with Technology

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The European Commission opens an investigation against Apple on charges of violating competition rules

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The European Union Antitrust Authority launched a series of measures and opened an investigation against the technology giant "Apple", the procedures of which require a preliminary official investigation into Apple Pay due to what was reported about obstructing competition in the mobile payment sector by allocating certain features of iPhone phones to users of the Apple Pay service. The Commission suspects, after a preliminary investigation, that the conditions set by Apple for Apple Pay users on payment applications and websites “may hinder competition and limit choice and innovation,” in addition to the fact that the rapidly growing and easy-to-use payment system “eliminates other competitors,” as any company that aspires to use the technology of the iPhone payment service “must go through Apple Pay and pay fees.” This decision comes following a complaint filed by Spotify in 2019, based in Sweden, accusing Apple of unfairly using its app store to promote its music, Apple Music. It also protested the restrictions imposed by Apple on applications that do not use its payment system in the Apple Store (Apple Store). In 2016, the American company Apple appealed the European Commission’s ruling regarding its payment of tax settlements worth thirteen billion euros to Ireland. European oversight bodies ruled that Apple's tax agreement with Delbin was illegal, and demanded a record penalty against the company. The European Commission also said that Ireland enabled Apple to pay taxes whose actual rate did not exceed one percent, which is much lower than other companies. Last March, the French authorities issued a decision condemning Apple and imposing a record fine of 1.1 billion euros due to practices that violate the rules of commercial competitiveness. Antitrust regulators in France accused Apple of monopolizing the market and causing huge losses to independent sellers in the face of anti-competitive agreements. Earlier this year, France also fined Apple 25 million euros for what it said was the practice of deception to get consumers to buy its latest phones. The French Competition Authority accused Apple of deliberately slowing down the performance of its old phones to force users to buy newer devices. The trend was observed in incidents that were repeated with the launch of each new version of its smartphones. Apple, in turn, did not deny that it was deliberately slowing down its devices. Rather, it admitted in December 2017 that it was actually doing so, but for a goal that was completely far from deceiving consumers to achieve commercial gains. Rather, its doing so fell within the framework of attempts to prolong the default lifespan of the devices. According to the company, the lithium batteries used in its devices become less effective over time, and may cause sudden shutdowns of operating systems to protect their electronic components. In 2018, the two companies, Apple and Samsung, were fined in Italy for the same reason, and the amount of the fine for each was 5 million euros. However, Apple was forced to pay an additional five million because it did not provide sufficient information to its customers about how to extend the battery life of its phones or replace them.

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