- Case began two years ago and is among a number against the US tech group
- Case relates to rules set on App store for developers
The EU will reportedly file antitrust charges against Apple this week over accusations its dominance of the app market has harmed competition. The case relates to a complaint lodged by Spotify in 2019, which accused the iPhone maker of unfairly restricting rivals to its own Apple Music service and complaining about the company’s 30 per cent commission on in-app purchases.
Margrethe Vestager, the EU’s competition chief, will late this week publicly issue charges against Apple over concerns that the rules it sets for developers on its App store break EU law, according to several people with direct knowledge of the announcement.
The UK competition watchdog has also opened a probe into Apple over claims the way it treats app developers is “unfair and uncompetitive”. It comes amid rising scrutiny over Apple’s dominant position in the app market, with a slate of developers such as Fortnite maker Epic Games accusing the company of distorting the market.
Price fixing: What you need to know
A key element of competition is price. It is essential that businesses set their prices independently. Price fixing is a serious form of anti-competitive behaviour that happens when two or more suppliers of a product or service come together and agree on pricing. Price fixing agreements do not need to be in writing or even to have been carried out; they are still against the law, simply making a cartel agreement is illegal.
Types of price fixing
Price fixing agreements can take many forms. As well as agreeing to charge the same price, members of a price fixing cartel may also illegally agree on discounts, margins, price differentials, price increases or minimum prices.
What’s the harm?
Price fixing agreements cause consumers and other businesses to pay more for goods and services without any additional benefit or value to the consumer. Where there is a lack of competition, for example where there is a price fixing cartel, both business and consumers suffer. The cost of doing business goes up.
