Google, Apple encounter anti-competitive complaint in Mexico

By Al Mayadeen English
Source: Agencies
10 Sep 2022 12:51

The complaint charges Apple and Google with "completely inhibiting" competition by "tying use of their own payment processing systems for in-app purchases" by "taking advantage of their monopoly in app stores."

Google's Play store and Apple's store charge 15%-20% commission, causing price inflation

Apple and Alphabet's Google have been investigated in Mexico for anti-competitive practices, according to a complaint filed by the country's former telecommunications chief Mony de Swaan Addati.

The former chief brought the complaint to Mexico's telecommunications regulator IFT on Friday.

de Swaan Addati’s complaint charges Apple and Google of "completely inhibiting" competition by "tying use of their own payment processing systems for in-app purchases" by "taking advantage of their monopoly in app stores."

According to de Swaan Addati's online statement, Google's Play store and Apple's store charge 15%-20% commission, causing price inflation.

A recent wave of lawsuits and complaints challenging the pair's app store rules in various countries has led to Google lowering fees and Apple loosening rules. However, app developers and other critics say more changes are needed.

Tech regulators around the globe have grown increasingly concerned with big tech regarding anti-trust issues and anti-competitive behavior, tax payment, privacy matters, data handling and more.

de Swaan Addati also stated that Mexico's competition regulator denied his request to open an investigation into the companies, prompting him to file a complaint with the IFT.

"I have full confidence that (the IFT) will investigate and exercise its powers - in line with international best practices - so that these companies stop abusing their market power to the detriment of developers and consumers," he said.

It is worth noting that more than 30 million smartphones were expected to be sold in Mexico last year, as per Statista.

Meanwhile, Google's Android has the largest market share in Mexico, with 77% penetration, according to the latest data from Statcounter.

Apple is under fire elsewhere in the region, with Brazilian regulators earlier this week prohibiting the sale of iPhones without a charger.