The National Commission for Markets and Competition (CNMC) has initiated an investigation against Apple Distribution International Ltd. and Apple INC. for alleged practices contrary to the Competition Defense Law (LDC) and the Treaty on the Functioning of the European Union (TFUE). The investigation focuses on the commercial conditions imposed on developers who use the Apple App Store to distribute their applications.
Possible Abuses of Dominant Position
Apple may be imposing unfair commercial conditions on application developers using its distribution platform, the Apple App Store. This conduct could constitute an abuse of dominant position, prohibited by Article 2 of Law 15/2007, of July 3, on Defense of Competition, and Article 102 of the Treaty on the Functioning of the European Union.
Relevance of the Investigation
The investigation has been initiated ex officio, due to the growing economic importance of app stores in Spain. The CNMC believes that these practices, if confirmed, could represent a very serious infringement of the LDC, with potential penalties including fines of up to 10% of the total worldwide turnover of the infringing companies in the previous financial year prior to the imposition of the fine.
Procedure and Deadlines
The initiation of this file does not prejudge the final outcome of the investigation. The CNMC has a maximum period of 24 months to instruct the file and resolve the case. During this time, the evidence will be evaluated, and it will be determined if Apple has engaged in anti-competitive practices.
International Context
Article 102 of the TFUE prohibits any abuse by one or more companies of a dominant position in the internal market or in a substantial part thereof. Apple’s practices could be in violation of this article if it is proven that they have imposed unfair conditions that harm developers and, by extension, consumers.
Implications for Developers
If the accusations are confirmed, application developers who rely on the Apple App Store to reach Apple product users may have been operating under unfair conditions that limit their ability to compete and grow. The resolution of this investigation could have a significant impact on how Apple manages its app store and on the developer ecosystem in general.
Conclusion
The CNMC’s investigation into Apple is another sign of the growing regulatory concerns surrounding the business practices of large tech platforms. With an instruction period that can extend up to 24 months, the tech sector will be watching the developments of this case, which could set important precedents for the regulation of digital markets in Spain and the European Union.