Malcolm Owen
The French government will be taking legal action against Apple and Google for alleged "abusive commercial practices," France's finance minister has declared, accusing the tech firms of taking advantage of the country's app developers with unfair contracts and unjust app store pricing schemes.
Minister Bruno Le Maire spoke to RTL Radio on Wednesday about the French government's intention to fight both Apple and Google in court, reports Bloomberg. Le Maire claims that when developers and "sell" them to Google and Apple, "their prices are imposed, Google and Apple take all their data, Google and Apple can unilaterally rewrite their contracts."
"All that is unacceptable and it's not the economy that we want," continued the minister. "They can't treat our startups and developers the way they do."
Le Maire's office advises an investigation by the ministry's fraud office found there were "significant imbalances" in the relationship between developers who create the apps and the companies operating the app stores, between 2015 and 2017.
A similar investigation into Amazon conducted by the Finance Ministry last year suggests the fine would be in the low millions. Currently under review by a tribunal, the Finance Ministry is looking to fine Amazon 10 million euros ($12.4 million) over the matter.
AppleInsider has contacted Apple about the minister's comments, but has yet to receive a response.
The relationship between Apple and France has become turbulent in recent months. In February, a Parisian court blocked an attempt by Apple to stop the protest group Attac from staging demonstrations concerning Apple's tax affairs in the iPhone maker's retail outlets in the country.
In January, the French government was reported as investigating claims that Apple's battery management software that slows down iPhones with worn batteries is a form of planned obsolescence.
Wesley Hilliard
AppleInsider Staff
Andrew Orr
Amber Neely
William Gallagher
33 Comments
Let me guess. Imbalance is defined as Apple and Google have a lot of money, but startups don’t. Wouldn’t startups by definition not have as much money as a well established company?! I guess it’s up to Apple and Google to make their App stores public so any startup can just use them to avoid those pesky startup costs?
I just always figured that if I started something and wanted to put it on the largest stage in the world, no matter if that is in technology or art or theater, that I am going to have to pay a price for that kind of exposure. So yeah, start ups have to bend to Apple and Googles "will". If you don't like it, come up with a better model and beat those companies at their own game. It's been done many times before. Just the price of doing business.
I'd be very interested to see where this goes. However what does strike me as curious is that France seems to be alone in these particular complaints, I find that unusual as there is no shortage of countries that have levied various complaints against tech companies, nor countries that are trying to assist start ups in every way possible.
A country must keep a holistic perspective and even-handedness when enforcing these complaints - otherwise they risk harming the industry they are attempting to protect. If too overbearing then there will never be a "French Apple", which ultimately means that true innovation will come from abroad.
"Unfair contracts and unjust app store pricing schemes?" That's pretty vague. Never mind the fine; what I want to know is, what permanent changes to the App Store is France planning to require?