Apple IncAAPL and Alphabet Inc’s GOOGGOOGL Google faced an investigation over anti-competitive practices in Mexico following a complaint from the country’s former telecom chief, Reuters reports.
Mony de Swaan Addati complained to Mexico’s telecom regulator IFT, accusing Apple and Google of thwarting competition by exploiting monopoly in app stores to tie use of their payment processing systems for in-app purchases.
Addati said Google’s Play store and Apple’s store charge 15%-20% commission, forcing price inflation.
A wave of complaints challenging their app store rules in various countries forced Google to reduce fees and Apple to ease regulations.
Addati added that Mexico’s competition regulator had declined his request to open an investigation into the companies, prompting him to take his case to the IFT.
According to data firm Statista, Google’s Android has the largest market share in Mexico, with 77% penetration, according to Statcounter.
Separately, South Korea’s latest law bans tech-giants from charging hefty commissions on in-app purchases.
The law will also ban the app store operators from “unreasonably” delaying the approval of apps or deleting them from the marketplace.
The Indian industry body also called for an “urgent need” to bring regulations for Apple’s App Store and Alphabet’s Play Store to ensure “fair competition.”
Spotify Technology S.A. SPOT founder Daniel Ek exploited a rare visit to Brussels to apply personal pressure on the European Commission to accelerate the case against Apple’s practices.
Price Action: AAPL shares traded higher by 0.98% at $158.91 in the premarket on the last check Monday.
