Apple is facing a new antitrust abuse regime in Germany, with the rules targeting how the iPhone-maker charges for app downloads, collects user data, and offers its services. While the new law is designed to limit Apple’s power in the market, the company has pushed back against the regulations, arguing that they will stifle small businesses who rely heavily on Apple’s services.
The new rules, which were quickly approved by Germany’s Federal Cartel Office (FCO), will now regulate Apple’s App Store, its mobile payment system, Apple Pay, and its streaming video service, Apple TV+. The laws will address specific issues like Apple’s 30% commission on app purchases and its stance against allowing competitors to use its own payment system.
Under this new regime, Apple will be required to offer app developers the ability to use their own payment processing systems, and Apple will also have to provide developers access to the tools and data they need to evaluate the sales performance and user engagement of their apps. Additionally, any changes Apple makes to its own apps or services will have to be shared with other developers.
The law also covers data collection, with Apple having to give users more control over how their data is used and shared. Apple will also have to be more transparent about how it collects and uses data, providing more detailed privacy policies.
While the new rules aim to stop Apple from abusing its market power, the iPhone maker has been clear about its opposition to the new law. Apple has argued that the restrictions will hurt smaller businesses, and that the FCO should focus on fairer competition, rather than targeting individual companies.
Regardless of Apple’s opinion, the new regime is now in effect and will have wide-reaching consequences on how Apple runs its business in Germany. The changes could also have far-reaching implications on Apple’s operations in Europe and the rest of the world. So while Apple may have been initially opposed to the law, the company may soon have to accept its new terms and adjust to the new regime in Germany.
