GERMANY: The Bundeskartellamt

Apple subject to provisions for large digital companies under Section 19a German Competition Act (GWB)

The Bundeskartellamt decided that Apple Inc., based in Cupertino, USA, is an undertaking of paramount significance for competition across markets. Apple and its subsidiaries are thus subject to extended abuse control pursuant to Section 19a of the GWB.

Section 19a GWB came into force in 2021, as part of an amendment to the German competition act. In a two-step approach, the Bundeskartellamt can prohibit companies that are of paramount significance for competition across markets from engaging in anticompetitive practices.

Apple has an economic position of power across markets. Based on its mobile end devices such as the iPhone, Apple operates a wide-ranging digital ecosystem which is of great importance to competition not only in Germany, but throughout Europe and the world. With its proprietary products iOS and the App Store, Apple holds a key position for competition as well as for gaining access to the ecosystem and Apple customers. This decision enables the Bundeskartellamt to proceed against and effectively prohibit anti-competitive practices.

With regard to specific practices employed by Apple, the Bundeskartellamt is examining Apple's tracking rules and the App Tracking Transparency Framework in another proceeding. In particular, the authority is looking into the initial suspicion that these rules could favour Apple's own offers and/or impede other companies.