German competition watchdog steps up monitoring of Apple
Germany's anti-cartel watchdog said Wednesday it had placed US computing giant Apple under closer surveillance for any
possible abuse of its market position.
The Federal Cartel Office said it had determined Apple to be a company of "paramount significance for competition across markets", a move that would allow it to "take action against and effectively prohibit anti-competitive practices".
Apple joins Amazon, Google parent Alphabet and Meta, the group behind Facebook, in falling under reinforced monitoring made possible by the German Competition Act.
The act, which came into force in January 2021, allows the cartel authority to intervene earlier, particularly against the world's tech giants.
READ ALSO: Apple announces big investments in Munich site
Products like the hugely succesful iPhone meant Apple presided over a "wide-ranging digital ecosystem which is of great importance to competition" in Germany and worldwide, Federal Cartel Office chief Andreas Mundt said in a statement.
The group controlled the "access to the ecosystem and Apple customers" through software products such as the iOS operating system and its app store, Mundt said.
This "outstanding position" was backed by the US group's significant financial resources, broad user base and the strength of the Apple brand, the competition authority said.
Apple also had "privileged access to data relevant for competition" via its network of products, the agency said.
All in all, the group had a "position of power" that created the potential to act in ways "not sufficiently controlled by competition".
In practice, the Federal Cartel Office was also looking to see whether app tracking rules "could favour Apple's own offers" but said that "no decision has been taken on initiating further proceedings".
The agency's move "misrepresents the fierce competition Apple faces in Germany", the US group said in a statement, adding that it planned to appeal the decision.
The agency said last week it was examining if it needed to place Apple's rival Microsoft under increased surveillance for anti-competitive practices.
Comments
See Also
The Federal Cartel Office said it had determined Apple to be a company of "paramount significance for competition across markets", a move that would allow it to "take action against and effectively prohibit anti-competitive practices".
Apple joins Amazon, Google parent Alphabet and Meta, the group behind Facebook, in falling under reinforced monitoring made possible by the German Competition Act.
The act, which came into force in January 2021, allows the cartel authority to intervene earlier, particularly against the world's tech giants.
READ ALSO: Apple announces big investments in Munich site
Products like the hugely succesful iPhone meant Apple presided over a "wide-ranging digital ecosystem which is of great importance to competition" in Germany and worldwide, Federal Cartel Office chief Andreas Mundt said in a statement.
The group controlled the "access to the ecosystem and Apple customers" through software products such as the iOS operating system and its app store, Mundt said.
This "outstanding position" was backed by the US group's significant financial resources, broad user base and the strength of the Apple brand, the competition authority said.
Apple also had "privileged access to data relevant for competition" via its network of products, the agency said.
All in all, the group had a "position of power" that created the potential to act in ways "not sufficiently controlled by competition".
In practice, the Federal Cartel Office was also looking to see whether app tracking rules "could favour Apple's own offers" but said that "no decision has been taken on initiating further proceedings".
The agency's move "misrepresents the fierce competition Apple faces in Germany", the US group said in a statement, adding that it planned to appeal the decision.
The agency said last week it was examining if it needed to place Apple's rival Microsoft under increased surveillance for anti-competitive practices.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.