Germany Takes on Big Tech

Issue 76

Apple and other big tech companies are facing international pressure as Germany’s Federal Cartel Office has launched a probe into Apple to examine the companies market dominance and determine whether there have been any antitrust violations.  This has been the fourth company Germany has launched investigations into this year with Facebook, Google, and Amazon already undergoing investigation.
         
The regulatory body fears that Apple uses its plethora of hardware and software to maintain dominance across several markets as well as the company's access to extensive amounts of data.
         
One significant complaint Apple is facing is the company’s handling of third-party products on their app store.  Consumers and app developers have complained that Apple forces downloads of Apple-created apps upon the activation of a new device, however, Apple has recently changed this procedure to include apps from other developers such as Google Inc.  However, third-party developers do lose out on profits as Apple takes 30% of all sales within the app store.
         
Facebook has fought back by arguing that the “iOS app economy” has allowed for the creation and maintenance of 250,000 jobs within Germany and has allowed software developers to spread their products across the globe.



Source: Financial Times