June 2024 – The Turkish Competition Authority (the “Authority”) has announced an investigation into technology major Apple. The focus is on whether Apple's behaviour of not allowing the use of alternative payment systems in the App Store and its anti-steering policies for mobile application developers constitute an abuse of dominant position.
As part of a broader Mobile Ecosystems Sector Review (the “Sector Review”), the Authority is examining the structure and functioning of the market for mobile smart devices and software. This Sector Review includes an analysis of Apple’s agreements with application developers and the Application Review Directive. Consequently, the Authority suspects that Apple may be placing certain restrictions on the payment systems of application developers using the App Store.
The Authority made the following analyses regarding the investigation:
- Restrictions on informing users: Application developers are currently prevented from informing users about alternative payment channels outside the application, such as their website. This restriction raises concerns whether consumers are being deprived of better option and price comparisons between in-app and external payments.
- Blocking in-app links: Apple blocks in-app links that redirect users to alternative payment channels. Additionally, developers are required to use Apple’s own payment system for in-app purchases, i.e., Apple's payment system IAP for in-app digital content sales, which charges a 30% commission. This also raises concerns whether Apple is restricting developers’ freedom of choice and preventing other payment systems from entering the Apple ecosystem.
Accordingly, the Authority has announced that the investigation against Apple has been initiated with the decision dated 21 May 2024. The outcome of this investigation could have significant implications for Apple’s operations and the broader mobile app market in Turkey.