Big Tech Compliance Tracker: Europe Provides ‘Statement Of Objections’ To Apple Over App Store Rules; US States Seek Spring 2022 Trial Date In Google Case

Here’s the latest news from the technology industry, which is coming under increasing global scrutiny.

European Commission Provides Apple With ‘Statement Of Objections’ Over App Store Rules

The European Commission has provided Apple with its preliminary opinion that it “distorted competition” in the music streaming space since it took advantage of its “dominant position” in the distribution of music streaming programs by the way of its App Store.

The commission “takes issue” with the required use of Apple’s in-app purchasing technology by music streaming app developers to provide users with their apps through the App Store. It is also “concerned” that the firm puts some limitations on the developers from telling Apple tablet and smartphone users about different buying options that provide lower prices, according to a statement.

“By setting strict rules on the App store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” Executive Vice-President Margrethe Vestager said in the statement.

US States Seek Spring 2022 Trial Date In Google Case

One attorney representing more than a dozen states spearheaded by Texas that have alleged that Google contravened antitrust law is seeking to have a U.S. judge to put a trial on the books for the spring of next year. By contrast, Google is seeking to have the trial in the autumn of 2023, Reuters reported.

Mark Lanier, who represents Texas, among the other states, said in a pre-trial hearing that they could be ready in an expedient manner. “We’re able to put focused people on this to make this their reason for living,” Lanier informed the judge, as per Reuters.

But Paul Yetter, who was speaking for Google, said it had obtained 1.1 terabytes of over a million documents from the states and that it needed time to be prepared. “I think we all would agree that if you have a big head start you want a short race. And they do have a big head start,” he said, according to Reuters.

Amazon Losses Exempt Firm From Taxes In Luxembourg

Amazon didn’t end up paying any business tax to Luxembourg in 2020, which is home to its European base. The firm’s European retail arm posted a $1.4 billion loss to the government of Luxembourg per a recent financial filing, which excluded it from having to pay corporate taxes, The Seattle Times reported.

While The Seattle Times said the filing “is likely to provide fresh ammunition for European policymakers,” the news outlet said Amazon adhered to the rules of Luxembourg. It also noted that the company pays taxes to different nations in Europe on profits it generates on the retail business and different parts of its operations such as cloud computing and fulfillment hubs.

“Corporate tax is based on profits, not revenues, and our profits have remained low given our heavy investments and the fact that retail is a highly competitive, low-margin business,” an Amazon representative said per the report.

FTC Draws Attention To Apple’s Allegedly ‘Anti-Competitive Repair Restrictions’

Apple was called out in a U.S. Federal Trade Commission (FTC) report for allegedly anti-competitive repair restrictions that inhibit independent repair companies from repairing its devices. The commission said in its report that the repair limitations have a negative impact on small companies in addition to individuals.

Tencent Will Reportedly Be Hit With Large Antitrust Fine In China

Tencent Holdings will reportedly face a large antitrust penalty in China, yet it’s not probable to be as large as Alibaba’s record $2.75 billion fine in April. Tencent will reportedly be hit with a fine at least $1.54 billion by the State Administration of Market Regulation (SAMR).