German authority investigating Apple’s dominance

Germany’s antitrust authority has  launched an investigation into whether Apple was exploiting its market dominance. The authority has earlier announced similar investigations of Google, Facebook and Amazon.

“The Bundeskartellamt has today initiated a proceeding against the technology company Apple based on the new competition law rules for large digital companies. This is the fourth large digital company against which the authority is taking action based on this new competition law tool”, the authority said.

The authority said that new legislation “enables the authority to intervene earlier and more effectively, in particular against the practices of large digital companies. In a two-step procedure the Bundeskartellamt can prohibit companies which are of paramount significance for competition across markets from engaging in anti-competitive practices.”

Andreas Mundt, President of the Bundeskartellamt: “We will now examine whether with its proprietary operating system iOS, Apple has created a digital ecosystem around its iPhone that extends across several markets. Apple produces tablets, computers and wearables and provides a host of device-related services.”

“In addition to manufacturing various hardware products, the tech company also offers the App Store, iCloud, AppleCare, Apple Music, Apple Arcade, Apple TV+ as well as other services as part of its services business. Besides assessing the company’s position in these areas, we will, among other aspects, examine its extensive integration across several market levels, the magnitude of its technological and financial resources and its access to data.”

“A main focus of the investigations will be on the operation of the App Store as it enables Apple in many ways to influence the business activities of third parties.”