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Technology | The Guardian

Is it payback time for Apple as the EU goes after its licences to print money? | John Naughton

June 27, 2020 at 04:00PM

The US giant faces a probe into its lucrative App Store and, more interestingly, the tech behind its phone payment system

On 16 June, the European commission opened two antitrust investigations into Apple’s App Store and Apple Pay practices. The first investigation will examine whether Apple has broken EU competition rules with its App Store policies. The second investigation is into whether restrictions imposed by Apple on the near field communication (NFC) capability of its iPhone and Apple Watch mean that banks and other financial institutions are prevented from offering NFC payment systems using Apple kit.

Let’s take the App Store first. When Apple unveiled the iPhone in 2007, it created an amazing new opportunity for software developers and, of course, for Apple itself. Because the new phone was basically a powerful handheld computer, that meant it could run smallish programs, which came to be called apps. And because it had an internet connection those programs could be efficiently distributed across the net. From this came the idea that Apple should set up an App Store to which developers could upload their programs. Apple, being a control-freak corporation, would vet those apps before they appeared on the store and would levy a 30% commission on sales. It seems like a great idea.

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