## EU Concludes App Store E-book Probe After Complaint Withdrawal
The European Commission has officially closed its antitrust investigation into Apple’s App Store regulations concerning e-book and audiobook applications. This decision follows the retraction of a complaint lodged by e-book distributor Rakuten Kobo.
### Initial Complaint and Focus of the Investigation
Initiated in June 2020, the investigation stemmed from Kobo’s assertion that Apple’s mandatory 30% commission on in-app purchases created an uneven playing field. Kobo contended this fee structure disadvantaged competitors like themselves against Apple Books, which is exempt from this commission. The investigation scrutinized Apple’s in-app purchase mandate and its restrictions on developers communicating alternative, potentially more affordable, purchasing avenues outside the App Store to iOS users.
### Ongoing Scrutiny Despite Closure
While this specific investigation has concluded, the Commission emphasized that the closure doesn’t imply Apple’s practices are compliant with EU competition regulations. Apple remains under observation under existing EU competition law and the Digital Markets Act (DMA). Designated a “gatekeeper” under the DMA, Apple faces ongoing pressure to modify its App Store operations. This closed investigation represents just one piece of a larger puzzle of regulatory scrutiny surrounding Apple. For example, in March 2024, the Commission imposed a fine on Apple regarding its music streaming app policies, demonstrating the continued focus on Apple’s app ecosystem.
### Broader Context of App Store Regulation
This e-book investigation was one of three concurrent probes launched by the Commission in 2020, highlighting the intense regulatory focus on Apple’s App Store practices. The DMA, in particular, represents a significant shift in the regulatory landscape, aiming to curb the power of large digital platforms and promote fairer competition within app marketplaces. The outcome of these ongoing regulatory efforts will significantly impact the future of app distribution and in-app purchases within the EU.
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