The French competition authority has recently lodged a statement of objections alleging that Apple’s App Store violates French competition law. The controversy stems from Apple’s app tracking and advertising practices, which the French competition authority claims are anti-competitive.
Apple’s App Store is the primary way that developers distribute apps to consumers. Apple’s policies dictate that developers must use only Apple’s App Store in order to distribute their apps. In addition, Apple requires developers to pay a 30% commission on all app sales made through the App Store. This percentage is much higher than any of its competitors.
The French competition authority claims that these practices are anti-competitive because they restrict competition in the app distribution market and increase the cost of app purchases for consumers. The French authorities also allege that Apple’s app tracking and advertising practices are anti-competitive.
The app tracking and advertising practices allow Apple to collect data about how users are using their apps, such as what kinds of apps they’re downloading and how often they’re using them. This data is then used to target ads to specific users. Apple’s screen-time feature also allows users to limit their app usage, but the French authorities worry that this too may be used as a way to restrict competition.
Apple claims that these practices are necessary to provide a secure and reliable platform for developers and prevent malicious activity. They argue that these practices are not anti-competitive and instead improve the overall security and experience of using the App Store.
The statement of objections issued by the French competition authority is the latest development in the ongoing legal battle between Apple and European regulators. Last year, Apple was ordered to pay a €1.2 Billion fine by the European Commission for anti-competitive practices related to its App Store. Apple is appealing the ruling and the French competition authority’s statement of objections is likely to have implications for the case.
At this point, it’s too early to know if the French competition authority’s statement of objections will be successful in its claims against Apple. Regardless, it is clear that app tracking and advertising practices may need to be closely monitored in the future in order to ensure that they do not lead to anti-competitive activities.
