EU Demands Apple Explain Services Weathering

European Commission and a network of national consumer protection authorities (CPC) have reported Apple for violations found in several services of the company including App Store, Apple Arcade, iTunes Store, Books, Music, and Podcasts. The consumer rights protection authorities are demanding that Apple align its services with European Union norms that prohibit restrictions based on geography.

The audit was carried out by the national departments of Belgium, Germany, and Ireland under the coordination of the European Commission.

The main claims against Apple

During the audit, CPC experts discovered that Apple was imposing limitations on European users based on their country of residence. Some of the key issues identified include:

  1. Access to content: Users within the EU/EEA can only access the interface of Apple Media Services that corresponds to the country specified in the registration of their Apple ID, and are unable to change it. This restriction is not in line with EU rules on the prohibition of geo-blocking.

  2. Payment methods: Users can only use payment methods issued in the country of registration of their Apple ID when making purchases in Apple services. This poses difficulties for users with cards issued in other EU countries.

  3. Downloading applications: The App Store does not allow users to download applications available in other EU/EEA countries, depriving them of necessary applications while traveling or temporarily staying in other EU countries, which goes against European norms.

These requirements are governed by the Hotlock Regulation, in effect since 2018, which prohibits unjustifiable discrimination against EU users based on citizenship or place of residence. A directive regarding services that prohibits discrimination in access based on place of residence is also applicable in cases where there are no objective reasons for such restrictions.

Next steps

Apple has been given a month to respond to CPC and propose ways to rectify the situation. If satisfactory solutions are not provided, negotiations between CPC and Apple may commence. If Apple refuses to address the violations, national consumer protection authorities have the authority to take measures to ensure Apple’s compliance with EU regulations.

Context and background

The CPC network was established to coordinate the efforts of national consumer protection authorities in the EU, Norway, and Iceland. This network facilitates the investigation and resolution of cross-border violations, with the European Commission playing a role in coordinating these joint investigations.

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