Apple's App Store Under Investigation in Colombia

Colombia's competition authority has opened a formal antitrust investigation into Apple, alleging that the company has abused its dominant position in the distribution of apps and purchases on iOS and iPadOS.

The Superintendence of Industry and Commerce (SIC) announced the probe yesterday (via MobileTime), stating that its Delegation for the Protection of Competition had reached a preliminary conclusion that Apple may have engaged in exclusionary practices that restrict free competition in the Colombian market.

The SIC case is focused on two primary concerns. First, the agency alleges that Apple contractually prevents developers from creating or operating alternative app stores on iPhones and iPads, ensuring that all software distribution takes place exclusively through the App Store. This restriction, regulators say, is designed to exclude potential competitors and preserve Apple's market dominance. The SIC noted that such clauses may amount to an abuse of a dominant position under Colombian law.

The second issue involves Apple's handling of in-app purchases. The SIC said developers are compelled to use Apple's proprietary In-App Purchase system, which applies commissions of 15% to 30% on each transaction. Apple also allegedly prohibits developers from informing users of cheaper alternatives outside the app, a practice known as anti-steering. In its announcement, the agency said these restrictions may result in 'unjustified excessive costs' for Colombian consumers and create 'artificial barriers' that deter new developers from entering the market.

The investigation will now proceed with evidence collection and analysis of Apple's conduct in Colombia. If the SIC determines that Apple has violated antitrust rules, the company could face sanctions of up to 10% of its turnover in the country, in addition to possible orders to amend its practices.

The Colombian probe reflects the growing international scrutiny of Apple's ‌App Store‌. Earlier this year, the European Commission fined Apple €500 million under the Digital Markets Act for preventing developers from directing consumers to alternative payment methods. In the United States, a federal court recently found Apple in contempt of a previous antitrust ruling and prohibited the company from collecting commission on certain web-based purchases. Regulators in Brazil, Japan, and South Korea have also pressed the company on similar issues.Tags: Apple Antitrust, App Store, ColombiaThis article, "Apple's App Store Under Investigation in Colombia" first appeared on MacRumors.comDiscuss this article in our forums