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Colombia’s Competition Authority Opens Antitrust Investigation Into Apple’s App Store

Colombia’s Competition Authority Opens Antitrust Investigation Into Apple’s App Store

Another country is looking into Apple’s App Store, as Colombia’s competition authority has opened a formal antitrust investigation into Apple. The authority alleges that the Cupertino company is abusing its dominant position when it comes to the distribution of apps and purchases on the iOS and iPadOS platforms.

MobileTime reports the Superintendence of Industry and Commerce (SIC) announced the probe yesterday. The Delegation for the Protection of Competition had reached a preliminary conclusion that Apple is possibly engaging in exclusionary practices that restrict free competition in the Colombian market.

Among the restrictions found by the SIC is the limitation of alternative app stores. Apple allegedly imposed contractual clauses that prevent developers from creating or distributing apps outside the App Store . According to the entity, this would exclude potential competitors and consolidate the company’s monopoly position in digital distribution.

Restrictions on payment methods other than Apple’s own system were also found. The company required the use of its In-App Purchase system, with a commission ranging from 15% to 30% per transaction, while prohibiting developers from informing users about cheaper external payment options.

As the investigation moves forward, investigators will collect evidence and analyze Apple’s conduct in Colombia. If the SIC determines that Apple has violated antitrust rules, the iPhone maker could face sanctions of as much as 10% of its turnover in the country, in addition the company could possibly be ordered to amend its practices.

Colombia is just the latest country or region to scrutinize Apple’s App Store. Earlier this year, Apple was fined €500 million under the European Commission’s Digital Markets Act for not allowing developers to direct customers to alternative payment methods. Meanwhile, a United States federal court recently found Apple in contempt of a previous antitrust ruling against the firm. Brazilian, Japanese, and South Korean regulators have also investigated on similar charges.