Apple hits out at 'baseless' twin investigations by the EU
The European Commission (EC) has launched a series of investigations into Apple to determine if it is in breach of competition rules.
The watchdog is investigating the company's App Store and its Apple Pay product.
Apple has rejected the investigations as "disappointing" and "baseless".
The EC is investigating Apple's App Store to determine if it is in breach of EU competition rules. Users of iPhones and Pads can only download apps via the app store and in-app purchases can only be processed through Apple's own in-app purchase system.
Apple charges a 30% commission on all subscription fees through this system.
There are also restrictions on developers when it comes to informing users of alternative purchasing possibilities outside apps, which could be cheaper.
The investigation follows separate complaints by Spotify and an e-book distributor on the impact of the App Store rules on competition in music streaming, e-books and audiobook sales.
Margrethe Vestager, EC executive vice-president, said Apple "obtained a gatekeeper role when it comes to the distribution of apps and content to users of Apple's popular devices".
"We need to ensure Apple's rules do not distort competition in markets where Apple is competing with other app developers," she said.
The second investigation focuses on Apple Pay and concerns Apple's terms and conditions for integrating this system into apps and websites on iPhones and iPads. This includes the company's limited access to Near Field Communication (NFC) functionality, which is used to 'tap and go' for payments.
On Apple devices, NFC is reserved for Apple Pay, limiting consumer options to use alternative 'tap and go' systems.
Ms Vestager said, "Mobile payment solutions are rapidly gaining acceptance among users of mobile devices, facilitating payments both online and in physical stores. This growth is accelerated by the coronavirus crisis, with increasing online payments and contactless payments in stores.
"It is important that Apple's measures do not deny consumers the benefits of new payment technologies, including better choice, quality, innovation and competitive prices."
Apple hit back at the announcement of the investigations.
"It’s disappointing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else," the iPhone maker said in a statement.
"We don’t think that’s right — we want to maintain a level playing field where anyone with determination and a great idea can succeed."
