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Apple’s pile of regulatory woes in the European Union has ticked up again: the iPhone maker is being accused of unlawfully discriminating against consumers by applying restrictions on how several of its media services can be accessed around the bloc.
Consumer protection authorities in three EU Member States have been investigating the geoblocking measures (access restriction) that Apple applies to services including Apple Music, iTunes Store and App Store.
The European Commission and the Consumer Protection Cooperation (CPC) Network, which coordinates joint actions by national consumer protection authorities, announced in a press release Tuesday that Apple has been notified of concerns about “several potentially prohibited geo-blocking practice.”
If Apple fails to address the CPC Network’s concerns, it could face enforcement under EU consumer protection law, where penalties can reach up to 4% of global annual turnover.
The European Union has rules that aim to promote the free movement of services, and rules against unjustified geoblocking — both are involved here, as they prohibit discrimination against consumers based on where they live.
The full list of Apple media services where concerns are being flagged by CPC Network Members in Belgium, Germany and Ireland is a follows: App Store, Apple Arcade, Music, iTunes Store, Books and Podcasts.
Issues include:
- Different interfaces for Apple media services in different EU/EEA (European Economic Area) countries that can’t be changed by the user, locking them to the interface shown in the country where their device was registered.
- Restrictions on payment methods for making purchases using Apple media services — again, the company only allows users to use a card issued in the country where their Apple account was registered.
- And limitations on App Store downloads. Users cannot access the local App Store from other countries, which means that they can’t access apps offered elsewhere (such as when travelling or during a temporary stay in another Member State).
“The Geo-blocking Regulation prohibits unjustified discrimination between EU customers on the basis of their nationality, residence, or place of establishment when they want to buy goods and services from traders located in a different Member State,” the CPC Network wrote in the press release.”The Services Directive requires that general conditions of access to a service do not contain discriminatory provisions relating to the nationality or place of residence of the service recipient, unless directly justified by objective criteria.”
Apple has been given one month to reply to the Network’s findings and propose commitments to address the issues.
The intervention could lead to a dialogue between the CPC Network and Apple, which could put an end to the case if Apple makes sufficient changes that resolve the concerns, such as removing the geoblocks.
However if Apple fails to reply — or if its reply is not deemed to fully address the CPC’s concerns — consumer protection authorities could take enforcement action at the national level.
Apple has been contacted for comment.
Natasha is a senior reporter for TechCrunch, joining September 2012, based in Europe. She joined TC after a stint reviewing smartphones for CNET UK and, prior to that, more than five years covering business technology for silicon.com (now folded into TechRepublic), where she focused on mobile and wireless, telecoms & networking, and IT skills issues. She has also freelanced for organisations including The Guardian and the BBC. Natasha holds a First Class degree in English from Cambridge University, and an MA in journalism from Goldsmiths College, University of London.
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