Colombia has added its name to the growing list of countries taking issue with Apple’s App Store practices, beginning an antitrust investigation into whether the technology giant has used its position to put local companies at a disadvantage.
The country’s Superintendency of Industry and Commerce (SIC) has said it is investigating Apple for managing contractual clauses it claims prohibits its developers from offering their apps anywhere but the App Store. The regulator alleges that such policies unfairly limit competition in the Colombian digital goods market.
Apple’s rules force developers to depend exclusively on the App Store and therefore on the company itself, reinforcing its position as the sole distributor of apps, according to the SIC. Spanish-language publications MobileTime and MacMagazine report that the investigation is focused on alleged violations of Decree 2153 of 1992, which regulates competition in Colombia.
The regulator also claims that Apple’s system for in-app purchases increases costs for consumers. As the fees can be cost between 15% and 30%, App developers cannot offer better and cheaper payment methods, the price is doubled to the consumers.
But aside from costs, the SIC claims the limitations set up by Apple deter new developers to enter the market and prevent those who already are from competing fairly. On the other side of the market, consumers face a smaller menu and a less fulsome experience, locked out from alternative payment options or pricing information that is relevant to them.
Apple, for its part, has been the focus of other antitrust inquiries around the world. Regulators in Brazil, the United States and the European Union have all moved against the company’s monopoly on apps through its App Store. In the case of the EU, Apple was required to accommodate third-party app marketplaces in this manner with the Digital Markets Act and we’ve seen the same cries coming from Japan.
Whether the Colombian investigation will result in any policy changes is not yet clear. For now, the SIC has indicated its commitment to protect local developers and consumers towards a future with a more competitive digital environment.
