Apple Under Swiss Antitrust Investigation Over Apple Pay
Apple is once again in the spotlight as Switzerland’s antitrust authority has launched an investigation into Apple Pay, focusing on its use of NFC technology for contactless payments. Unlike Android devices, which generally allow third-party apps unrestricted access to NFC-based payments, Apple has historically limited this access on its iOS devices. Although Apple began easing these restrictions across the European Union in 2024 following pressure from the European Commission, Switzerland—outside the EU—has now opened a preliminary probe to determine whether other mobile payment providers can effectively compete with Apple Pay on iOS devices.
The Swiss Competition Commission’s Secretariat is examining whether Apple’s terms for granting NFC access comply with Swiss antitrust laws, noting that these terms differ from those applied in the European Economic Area. This investigation highlights ongoing concerns about Apple’s control over mobile payments and its potential impact on competition within the Swiss market.
Recent Legal Developments in the US: Apple Wins Partial Reprieve
Meanwhile, Apple has seen a mixed outcome in the United States related to the high-profile Epic Games lawsuit. In April 2024, Judge Yvonne Gonzalez Rogers ruled that Apple had willfully violated a 2021 injunction by continuing to impose anti-steering restrictions and barred Apple from collecting commissions on purchases made outside the App Store. Apple appealed, and the Ninth Circuit Court of Appeals has now reversed parts of that ruling, stating that the commission ban was overly broad as a civil contempt sanction.
Despite this partial victory, Apple remains unable to collect commissions on external payments until a suitable rate is negotiated with Epic or determined by the court. This case has set a precedent that is influencing similar legal challenges worldwide, such as Epic’s recent request in Australia to allow sideloading of apps without commission fees.
Broader Antitrust Challenges Across Europe and Beyond
Apple’s antitrust issues extend beyond Switzerland and the US. The European Union has designated Apple as a “gatekeeper” under the Digital Markets Act due to its significant market dominance, particularly regarding the App Store. This status requires Apple to allow third-party app stores on iOS and iPadOS devices and has led to changes in its developer programme, including reduced commission rates for some developers as of March 2024.
Additionally, Apple recently notified the EU that its Maps and Ads services have met the thresholds for gatekeeper designation, prompting the EU to consider further antitrust measures. If approved, Apple will have six months to implement required changes. In the Netherlands, Apple faces a separate case where consumer groups accuse it of abusing its dominant position by charging excessive fees to app developers.
Poland’s antitrust watchdog has also initiated an investigation into Apple’s handling of personalised ads, alleging that Apple circumvents its own App Tracking Transparency (ATT) framework for its apps and platforms, including the App Store. This could allow Apple to deliver personalised advertising without obtaining user consent, raising additional regulatory concerns.
Global Antitrust Pressure Continues
In China, a group of around 55 consumers has filed a formal antitrust complaint against Apple, accusing the company of monopolising app distribution and payment methods domestically while permitting off-App Store payments and third-party app stores in other regions. This complaint adds to the growing list of antitrust challenges Apple faces worldwide, reflecting increasing scrutiny of its business practices in multiple jurisdictions.
As Apple navigates these complex legal and regulatory landscapes, it remains to be seen how the company will adapt its policies and technology to comply with evolving antitrust requirements globally. The outcomes of these investigations and lawsuits will likely have significant implications for Apple’s operations and the broader mobile payments and app ecosystems.
Overall, Apple’s current situation illustrates the ongoing tension between its tightly controlled ecosystem and regulatory efforts aimed at fostering competition and consumer choice.
Looking ahead, the industry will be watching closely how Apple responds to these challenges, particularly the Swiss investigation and the evolving legal battles in the US and Europe.