A Canadian consumer advocacy group is looking to break up Apple’s App Store.
As reported by journalist Peter Nowak on Do Not Pass Go, the University of Ottawa’s Canadian Internet Policy and Public Interest Clinic (CIPPIC) filed an application with the Competition Tribunal to challenge the App Store. The legal clinic alleges that Apple’s “dominance” over what can or can’t be released on iPhone and iPad is causing significant harm to developers and consumers.
“Apple’s abuse of dominance results in harm to competition in Canada, including by reducing quality and innovation among developers, and by increasing prices and reducing choices for consumers,” it wrote. “Apple maintains its dominance through significant barriers to entry, including technical and contractual restrictions that make the App Store the exclusive channel for distributing iOS apps.”
The filing argues that Apple blocks the entry of competing marketplaces and in-app payment services, which, in turn, prevents any opportunity for “lower commissions and competitive options.”
The CIPPIC is calling for the Tribunal to argue this case with the ultimate goal of preventing Apple from requiring developers to distribute apps in Canada exclusively through its app store, as well as imposing demands to prevent steering consumers to third-party alternatives.
Historically, Apple has argued that its so-called “walled garden” to the App Store is necessary for quality control and consumer privacy. But the Tribunal application counters this by saying that it just allows Apple to take its 30 per cent cut on apps and games revenue.
Jean-Marc Leclerc, a lawyer representing CIPPIC, also told Do Not Pass Go that Apple’s dominance has led to many developers being afraid to publicly criticize the tech giant in the event of any repercussions, even though they’ve expressed support privately.
It remains to be seen what will come out of this filing. Of course, this is far from the only legal challenge of Apple’s App Store. The most famous example is the long-running battle between Apple and Fortnite maker Epic Games after the latter introduced an in-game payment system in August 2020 that went against App Store policies. After Apple responded by banning Fortnite on its devices, Epic took Apple to court in an effort to break up the App Store.
Ultimately, a California judge largely ruled in favour of Apple, allowing the company to continue restricting distribution and payments to its App Store. However, Apple was also ordered to allow developers to link to external websites through which customers could access third-party options. Since then, Microsoft has been planning its own Xbox mobile store, which is partly what drove its acquisition of Candy Crush maker Activision Blizzard King.
That said, the company has also sided with Epic Games and criticized Apple’s efforts to overturn an injunction that prevented Apple from collecting fees on the third-party sites that a developer might link to in its apps. Microsoft blamed Apple’s persistent legal challenges for the delay of its Xbox mobile store.
All of that is to say that any action to break up the App Store will get quite messy, and efforts so far haven’t been too successful. The only exception is the European Union, whose strict regulations have forced Apple to allow alternative app marketplace options in the region. Only time will tell, then, what might happen in Canada with the CIPPIC’s filing.
Source: Competition Tribunal Via: Do Not Pass Go
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