EU Regulators Accuse Apple of Violating New Tech Rules
The European Union's regulatory authorities declared today that Apple is violating new technological rules. According to the accusations, the tech giant does not allow customers of its App Store to be directed towards other solutions. The European Commission, the EU's executive body, also indicated that it has opened a new investigation into Apple regarding new contractual conditions with developers.
Background
The EU launched an investigation into Apple, Alphabet, and Meta in March 2024 under the new Digital Markets Act (DMA). This law aims to reduce the power of large tech companies. Under this law, these companies are not allowed to prevent their users from being informed about cheaper options or subscriptions outside of their stores.
Preliminary Findings
The Commission's preliminary findings prove that Apple was in breach of the DMA because the App Store rules prevent app developers from freely directing consumers to alternative channels for offers and content. The American company does this through a system where app developers can provide a link that redirects users to a web page where they can purchase content. However, this process is subject to several restrictions imposed by Apple, which prevent app developers from communicating, promoting offers, and concluding contracts through the distribution channel of their choice.
Additional Concerns
The European regulator also added that the fees Apple charges developers for the initial acquisition of new customers via the App Store go beyond what is "strictly necessary," without defining this term.
Potential Consequences
Apple could face fines of up to 10% of its global annual turnover if found guilty of violating the DMA. This is not the first time Apple has been in the EU's crosshairs. In March 2024, it was fined €1.8 billion for abusing its dominant position in the market for music streaming app distribution. This is far from over.