Apple breathes a little easier momentarily. Kobo, a Rakuten subsidiary and Apple competitor in the ebook market, withdraws its complaint.
This decision avoids a possible conviction for the Cupertino company. The complaint, filed in June 2020, led to an in-depth antitrust investigation by the European Commission into Apple's practices regarding in-app purchases in its store. (read our article)
Apple X Kobo – A dispute that has lasted for almost 4 years, why?
Kobo contested at the time the fact that Apple takes a 30% commission for the sale of each digital book sold from its application available in the App Store.
Indeed, Kobo believed that this commission created a distortion of competition by favoring Apple Books, which was not subject to the same fees.
They said the practice prevented app developers from offering competitive prices and limited consumer choice.
The European Commission got to work
The European Commission very quickly began its investigation in June 2020. It declared that this would allow it “to assess whether the rules imposed by Apple on developers concerning the distribution of applications via the App Store infringe the competition rules of the European Union. The investigations focus specifically on the mandatory use of Apple's proprietary in-app purchasing system and restrictions on developers' ability to inform iPhone and iPad users of cheaper purchasing options outside of applications”.
But Kobo finally withdraws its complaint
Without knowing why, the Rakuten subsidiary is now withdrawing its complaint. As a result, the EC closed its investigation, thus depriving the organization of the necessary basis to pursue a possible conviction.
Although this decision is a victory for Apple, the story continues. The Digital Markets Act (DMA), new European legislation aimed at regulating the practices of digital giants, continues to weigh on Apple.
The future of Apple Books, an 8 billion fine?
Kobo's dropping the lawsuit raises questions about the future of Apple Books and its digital book strategy.
The firm will have to adapt to new European regulations and find a balance between defending its commercial interests and respecting competition.
If it refuses, it could be ordered to pay a fine of around $8 billion. A straw for Apple? Maybe, but a big blow to its digital book strategy.
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