Watchdogs take a swipe at Apple Pay

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The antitrust probe is the latest in a string of attacks on Apple’s business model by app developers, rival firms and governments

yet an app to keep track of the growing number of antitrust complaints against Apple. But perhaps there should be. On May 2nd the European Commission, the’s executive arm, added another to the pile. Following an investigation begun in 2020, it sent the smartphone-maker a “statement of objections”, saying that, in theAt issue is Apple Pay, a contactless-payment service introduced in 2014.

The commission’s findings are only preliminary. But if a full investigation comes to the same conclusion, Apple would be in breach of European competition laws, and exposed—at least in theory—to fines of up to 10% of its worldwide turnover. The firm will have further chances to argue its corner before the commission issues a final decision, a process that could take many months.

. Apple runs the iPhone as a “walled garden”, in which the firm imposes tight controls on which apps are allowed to run on its devices, and on what those apps are allowed to do. Apple says its restrictions are there for the privacy and security of its users, an argument it has repeated in response to the commission’s allegations.

Others, though, allege less noble motives. In 2020 Epic Games, the maker of “Fortnite”, a popular video game, and “Unreal”, a software engine on which hundreds of other video games are built, sued Apple, claiming that its refusal to allow rival firms to process payments made from within apps was anticompetitive. After losing the initial case, Epic has appealed—this time with support from Microsoft, America’s Department of Justice and 35 individual states.

Investigations and court cases, of course, are not foregone conclusions. But even if Apple wins some battles, it could still lose the war. On March 24th theagreed the text of the Digital Markets Act , a bumper piece of legislation designed to force big tech firms to open their platforms up to competition. One of its themes is to try to forbid companies from giving preferential treatment to their own apps and services.

 

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