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Great market power – Cartel Office investigates Apple

The iOS platform alone supports more than 250,000 workstations in Germany – says Apple. But is the group abusing its market power? The Federal Cartel Office is now examining this.

The Bundeskartellamt is now using its new options for proceeding against large digital platforms for investigations against Apple. “We will now check whether Apple has built a digital ecosystem around the iPhone with the proprietary iOS operating system across several markets,” announced the Cartel Office President Andreas Mundt.

Apple: Open dialogue

Since January, the Federal Cartel Office has been able to take action against large digital companies that are of “paramount cross-market importance for competition”.

The authority is already examining Facebook, Amazon and Google on this basis. “We look forward to discussing our approach with the Federal Cartel Office and conducting an open dialogue about all concerns,” said Apple in a response to the investigation on Monday. The group is “proud to be an engine for innovation and jobs”. The iOS platform alone supports more than 250,000 workplaces in Germany.

The EU Commission already has an eye on the App Store

The Bundeskartellamt points out that in addition to iPhones, Apple also offers tablets, computers and portable devices such as a computer clock as well as various services including music and video streaming. “One focus of the investigation will be on the operation of the app store, as it enables Apple in many ways to influence the business activities of third parties,” emphasized Mundt.

Apple’s app store system is already being investigated by the EU Commission, which accuses the group of unfair competition with other providers of music streaming services. Among other things, the focus is on the tax of 15 to 30 percent on digital revenues generated in the App Store.

Pre-installing Apple apps as a self-preference?

The Cartel Office also announced further investigations against Apple after complaints about “potentially anti-competitive practices”. On the one hand, Apple gave users the option in the spring of banning app developers from tracking their activities across different apps and services.

On the other hand, the pre-installation of only own apps is denounced in complaints as a possible self-preference.