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Tag: antitrust

  • Apple Faces Accusations Of Monopoly And Restrictive Practices From Chinese Users

    Apple Faces Accusations Of Monopoly And Restrictive Practices From Chinese Users

    A collective of 55 Chinese iPhone and iPad users submitted a grievance to China’s market regulation body on Monday, as per a lawyer representing the group. They assert that Apple is leveraging its market dominance to impose restrictive app distribution and payment systems, while also levying significant commissions.

    Allegations Against Apple

    The claimants, under the leadership of lawyer Wang Qiongfei, accuse Apple of monopolizing iOS app distribution in China. They contend that the company allows alternative payment methods and app stores in other regions due to regulatory pressures from the European Union and the United States. However, they believe this flexibility is not extended to the Chinese market.

    The complaint points out three key infringing practices by Apple that are believed to contravene China’s Anti-Monopoly Law. The first is the alleged compulsion for consumers to buy digital goods exclusively through Apple’s In-App Purchase system. The second is the purported restriction of iOS app downloads to the App Store. Lastly, the plaintiffs accuse Apple of imposing commissions of up to 30 percent on in-app purchases.

    Apple has yet to provide a comment in response to these accusations.

    Previous Legal Endeavors

    This represents the second time Wang has spearheaded a complaint against Apple. A similar lawsuit was filed in 2021, but it was ultimately dismissed by a Shanghai court the following year.

    Wang anticipates that this administrative complaint will progress more rapidly through the regulatory system compared to the preceding civil lawsuit. He is currently appealing the verdict of the previous lawsuit to China’s Supreme People’s Court. The court heard the arguments for the appeal in December, and a decision is still forthcoming.

    Recent tensions between China and Washington have prompted China to initiate a series of antitrust investigations aimed at US tech companies. This includes chipmaker Qualcomm, which is currently under scrutiny for its acquisition of Israeli firm Autotalks.

    Questions & Answers

    What are the main allegations against Apple?
    The main allegations against Apple are that it is forcing consumers to buy digital goods exclusively through its In-App Purchase system, restricting iOS app downloads to the App Store, and imposing up to 30 percent commissions on in-app purchases.

    Who is leading the complaint against Apple?
    The complaint against Apple is being led by lawyer Wang Qiongfei on behalf of 55 Chinese iPhone and iPad users.

    What precedent exists for this type of complaint against Apple in China?
    A similar case was filed by Wang Qiongfei against Apple in 2021, but it was dismissed by a Shanghai court. Wang is currently appealing this decision to China’s Supreme People’s Court.

  • Indonesia’s antitrust body looking into risks from reported Grab-GoTo merger

    Indonesia’s antitrust body looking into risks from reported Grab-GoTo merger

    The Indonesian competition authority has initiated an investigation to identify potential risks associated with a potential merger between tech behemoths Grab and GoTo, according to the head of the agency.

    Muhammad Fanshurullah Asa, the head of the agency, stated that a comprehensive review could be carried out once the merger occurs and both firms officially notify them of their actions.

    Although there is no official confirmation from either company about the speculated merger, recent months have seen an increase in speculation about this potential merger.

    It was suggested by individuals familiar with the situation last week that the two companies were aiming to finalize a deal within the second quarter of this year.

    Questions & Answers

    What is the nature of the investigation being conducted by the Indonesian competition authority?
    The investigation is designed to identify any potential risks that could arise from a possible merger between tech giants Grab and GoTo.

    Have Grab and GoTo confirmed their plans for a merger?
    No, both companies have yet to officially confirm their plans for a merger, though speculation has been rife in recent months.

    When are the two companies expected to finalize their deal?
    Sources familiar with the matter suggested that the companies are aiming to finalize the deal in the second quarter of this year.

  • India to expedite Amazon, Flipkart antitrust probe

    India to expedite Amazon, Flipkart antitrust probe

    India’s antitrust watchdog plans to expedite a restarted probe into allegations of anti-competitive behavior at Amazon.com Inc and Walmart Inc’s Flipkart, as it intensifies scrutiny of big-tech firms, two people close to the matter said.

    The comments come as major U.S. technology firms including Twitter Inc and Facebook Inc are at loggerheads with the government over issues such as data privacy bills and policies some industry executives have called protectionist.

    The Competition Commission of India (CCI) initiated a probe in January last year on the basis of a complaint alleging Amazon and Flipkart promoted select sellers on their e-commerce platforms and that deep discounts stifled competition.

    The companies have denied wrongdoing.

    Near-immediate legal challenges from the pair stalled the probe for over a year until a court last week allowed it to resume, having dismissed arguments that the CCI lacked evidence.

    Though Amazon and Flipkart are likely to appeal, the CCI plans to demand information from them related to the allegations “as quickly as possible”, said one of the people, who declined to be identified due to the sensitivity of the matter.

    The investigation “will be expedited”, the person said. Such investigations in India typically take months to complete.

    Amazon declined to comment. Flipkart and the CCI did not respond to requests for comment.

    The CCI is speeding up all cases involving big technology firms, including by deploying additional officers for some cases and working to more stringent internal deadlines, said the two people, who are familiar with the watchdog’s thinking.

    “Cases involving digital firms are getting a priority at CCI as they can have a significant impact on the economy and Indian startups,” said one of the people.

    Last year, the CCI began reviewing allegations of Google abusing the position of its Android operating system in the smart TV market, and is likely to soon order a comprehensive antitrust investigation, the people said.

    Google declined to comment.

    Such a probe would be the third against Google, with the Alphabet Inc unit already battling cases relating to Android as well as its payment app.

    The CCI is also investigating practices at MakeMyTrip Ltd and privacy policy changes at Facebook’s WhatsApp.The probe into Amazon and Flipkart is restarting at a time when both are battling accusations from offline retailers that their complex business structures allow them to circumvent foreign investment rules for e-commerce.

    Amazon, which has said it “does not give preferential treatment to any seller”, told the court here it disagreed with the report.

    The antitrust body will examine the Reuters report and could use it as part of its investigation, one of the people said.

    “The CCI’s plan to move faster on such cases is in line with other antitrust regulators globally that are investigating digital markets like e-commerce and online search, which are dynamic and evolving fast,” said an Indian antitrust lawyer who represents tech firms.

  • The EU comes after Apple with list of antitrust charges

    The EU comes after Apple with list of antitrust charges

    Apple is taking hit after hit in its continued struggle against antitrust accusations, as only last week Arizona passed a bill forcing the App Store to allow third-party payment systems within apps to circumvent the 30% commission fee.

    Reuters has revealed that EU antitrust regulators are currently finalizing a list of charges against Apple for violating antitrust laws. Apparently, Spotify, the Swedish music streaming service, had jumpstarted a set of four cases against Apple when it filed a report against the tech giant two years ago.

    Spotify had initially complained to the European Commission that Apple was giving an unfair advantage to Apple Music by restricting alternative platforms to keep them in its shadow. This has since galvanized further complaints against Apple’s 30% commission fee imposed on all apps without allowing alternative payment systems or other app stores onto the iOS.

    If Apple loses to these charges, it could spell the end of its App Store monopoly. In the US, Apple is waiting to go on trial in only two months to face Epic Games in a lawsuit for antitrust practices, which was launched last August. It looks like a freer mobile app publishing platform may loom on the horizon after all, which would be fortunate for smaller developers and businesses who have been impacted the most by this monopoly.

    Reuters states that the document listing the charges is set to be delivered to Apple sometime before this summer.

  • Google set to face record EU antitrust fine as soon as Tuesday

    Google set to face record EU antitrust fine as soon as Tuesday

    EU antitrust regulators are likely to impose a record fine on Alphabet unit Google over its shopping service as soon as Tuesday, two people familiar with the matter said on Monday, concluding one of three cases against the company.

    The European Commission’s case was triggered by scores of complaints from both U.S. and European rivals, leading to a seven-year-long investigation into the world’s most popular internet search engine.

    The EU competition authority charged Google in April 2015 with distorting internet search results to favor its shopping service, harming both rivals and consumers.

    The Commission declined to comment.

    Google said: “We continue to engage constructively with the European Commission and we believe strongly that our innovations in online shopping have been good for shoppers, retailers and competition.”

    The company has said regulators ignored competition from online retailers Amazon and eBay Inc.

    Reuters exclusively reported on June 1 that the EU competition enforcer aimed to sanction the company before the summer break in August.

    Companies found guilty of infringing EU antitrust rules can be fined as much as 10 percent of their global turnover, which in Google’s case could be about $9 billion of its 2016 turnover but it is not expected to reach this level.

    A 1.06 billion euro fine handed down to U.S. chipmaker Intel in 2009 is the highest to date.

    Apart from the fine, the Commission will tell Google to stop its alleged anti-competitive practices but it is not clear what measures it will order the company to adopt to ensure that rivals get equal treatment in internet shopping results.

    The Commission’s tough line is in sharp contrast with the U.S. Federal Trade Commission which settled its own web search case with the company in 2013 by requiring Google to stop “scraping” reviews and other data from rival websites for its own products.

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