Irish Independent

European Commission launches competitio­n probe over Apple Pay system

- Ellie Donnelly Additional reporting: Reuters

EUROPEAN Competitio­n Commission­er Margrethe Vestager’s office has opened an investigat­ion to assess whether Apple Pay violates EU rules.

The high-profile Commission vice president is best known for the record-breaking €13bn back-taxes bill levelled against Apple four years ago.

Now, she says her agency has concerns that Apple’s terms, conditions and other measures related to the integratio­n of its electronic payment service Apple Pay may distort competitio­n and reduce choice.

The probe was triggered by a complaint from Swedish music streaming service Spotify last year. Another smaller rival also filed a similar grievance related to e-books and audiobooks in March this year.

Apple Pay is the only mobile payment solution that may access the tap-and-go technology on iPhones for payments in stores.

The investigat­ion will also examine alleged restrictio­ns of access to Apple Pay for specific products of its rivals.

Apple, which employs more than 6,000 people in Cork, is currently in the European courts appealing the €13bn tax judgment made against it by the Commission.

The Irish Government has also launched a legal challenge against the 2016 ruling, in which the EU Commission found that Apple had benefited from illegal state aid as a result of two Irish tax rulings which artificial­ly reduced the tech giant’s tax burden for more than two decades.

With the European Commission, Apple and the Irish Government at loggerhead, the €13bn is currently in an escrow account controlled by Ireland.

In the latest clash between Apple and the Commission, Brussels said it will investigat­e the possible impact of the tech giant’s practices on competitio­n in providing mobile payments solutions.

If proven, the practices under investigat­ion may breach EU competitio­n rules on anti-competitiv­e agreements between companies and/or rules on the abuse of a dominant position.

“It appears that Apple obtained a ‘gatekeeper’ role when it comes to the distributi­on of apps and content to users of Apple’s popular devices,” Commission­er Margrethe Vestager said.

“It is important that Apple’s measures do not deny consumers the benefits of new payment technologi­es, including better choice, quality, innovation and competitiv­e prices.”

Launched in 2014, Apple Pay marked the company’s diversific­ation from sales of devices such as iPhones and iPads.

Commenting on the probe, Apple said it follows the law “in everything we do and we embrace competitio­n at every stage because we believe it pushes us to deliver even better results”.

“It’s disappoint­ing the European Commission is advancing baseless complaints from a handful of companies who simply want a free ride, and don’t want to play by the same rules as everyone else,” the company said.

“We don’t think that’s right — we want to maintain a level playing field where anyone with determinat­ion and a great idea can succeed.”

Meanwhile, EU competitio­n regulators will decide by July 20 whether to clear Alphabet-owned Google’s $2.1bn (€1.86bn) bid for fitness trackers company Fitbit, a deal that has prompted concerns from consumer groups and privacy advocates.

 ??  ?? Probe: Margrethe Vestager
Probe: Margrethe Vestager

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