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Apple has an economic position of power across markets which gives rise to a scope of action that is not sufficiently controlled by competition. 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 also 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 us to specifically take action against and effectively prohibit anti-competitive practices.In the press release, the FCO says that Apple's two billion device active install base gives it a "strong power" to create rules for third parties, with Apple exerting control over customers and access to customers. Combined with Apple's resources, Apple is in a "position of power" that makes it subject to the aforementioned "special abuse control." This designation is valid for five years.
Apple is proud to be an engine for innovation, job creation, and competition in every market where we operate. The FCO’s designation misrepresents the fierce competition Apple faces in Germany, and it discounts the value of a business model that puts user privacy and security at its core. While we will continue to work with the FCO to understand their concerns, we plan to appeal their decision.Apple said that the FCO is not presenting an accurate picture of the hardware market in Germany, and that the decision is not based on Apple's true competitive significance. Despite the FCO's claims that Apple's ecosystem limits customer choice, Apple says that iPhone and iPad are not stuck with the Apple ecosystem, but rather choose to use Apple products due to loyalty to the company.
Enlarge (credit: NurPhoto / Contributor | NurPhoto)
Last fall, it looked like trouble for Microsoft when the European Union launched an in-depth investigation into its acquisition of Activision, but it now seems that Microsoft will emerge victorious. Three people familiar with the European Commission’s opinion on the matter told Reuters that, by agreeing to make a few more concessions, Microsoft will likely win EU antitrust approval on April 25.
According to Reuters, the European Commission is not expected to ask Microsoft to divest large parts of Activision—like separating out its Call of Duty business—to win approval. Instead, long-term licensing deals of lucrative games that Microsoft has offered to rivals could suffice, in addition to agreeing to “other behavioral remedies to allay concerns of other parties than Sony,” one insider told Reuters.
Microsoft declined Ars' request to comment, but the company told Reuters that it is "committed to offering effective and easily enforceable solutions that address the European Commission's concerns." Microsoft has previously opposed any proposed remedies forcing the merged companies to sell the Call of Duty franchise.
20. Because more than half of Google's search business was conducted through Apple devices, Apple was a major potential threat to Google, and that threat was designated by Google as "Code Red."
21. Google paid billions of dollars to Apple and agreed to share its profits with Apple to eliminate the threat and fear of Apple as a competitor.
22. Google viewed the aspect of Apple as a potential competitor to be "Code Red."
23. If Apple became a competitor in the search business, Google would have lost half of its business.
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