Spain launches antitrust investigation into Apple’s App Store practices

Apple is facing a new antitrust investigation in Europe as Spain’s competition authority, the CNMC, announced on Wednesday that it is probing the tech giant’s App Store practices. The inquiry aims to determine whether Apple is imposing unfair trading conditions on developers who use its platform to distribute software to iOS users.

The authority indicated that “Apple may be engaging in anti-competitive practices by imposing unfair trading conditions on developers who use Apple’s App Store to distribute applications to users of Apple products.”

The investigation by the Spanish authority could take up to two years to complete. If the CNMC finds that Apple has breached competition rules, the company could face a penalty of up to 10% of its global annual turnover, potentially amounting to billions of euros.

Developers have long criticized Apple’s App Store operations, particularly regarding the fees charged for in-app sales and the use of its payment technology. Additional complaints include the company’s app review process and broader App Store governance, with accusations of arbitrary and unfair decisions.

Apple defends its practices, claiming that it applies clear and consistent rules designed to ensure a safe and high-quality experience for mobile users. The company also states that more than 90% of App Store revenues are passed on to developers without Apple taking a commission.

In response to the CNMC investigation, Apple spokesperson Emma Wilson said the company would “continue to work with the Spanish Competition Authority to understand and respond to their concerns.”

European antitrust regulators have increasingly scrutinized Big Tech, leading to growing regulatory challenges for Apple. This includes a €1.84 billion EU antitrust fine issued in March over anti-steering practices related to music streaming apps and a settlement earlier in July requiring Apple to open up contactless payments on iOS.

The introduction of new competition rules in Europe is adding to Apple’s regulatory woes. Earlier this year, the European Commission began investigating the App Store for potential non-compliance with the Digital Markets Act (DMA). The DMA imposes stringent competition rules across the EU, with penalties of up to 10% of global turnover or more for violations.

Last month, the European Commission’s preliminary findings suggested that Apple’s anti-steering rules violate the DMA. Additionally, the Commission has launched a separate investigation into a new fee, known as the Core Technology Fee (CTF), that Apple applies to developers who accept its business terms allowing them to benefit from DMA entitlements.

The European Commission is also examining Apple’s compliance with a DMA requirement to allow third-party app stores. Developers have argued that Apple has made it difficult for iOS users to download and use these alternative marketplaces, contrary to the DMA’s intentions. The Commission will need to resolve this dispute.

Furthermore, the UK is preparing to introduce its own Big Tech-focused competition reforms, potentially adding more regulatory challenges for Apple.

As antitrust actions against Apple’s treatment of ecosystem developers continue to mount, litigation funders are beginning to take notice, signaling that Apple’s legal and regulatory battles are far from over.