European Union regulators have accused Apple of imposing unfair restrictions on developers of applications for its App Store, in violation of a new law meant to encourage competition in the tech industry. The charges come as part of a broader tussle between Apple and E.U. regulators, who claim the tech giant is using its size and resources to stifle competition.
According to the European Commission, Apple is the first company to be charged for violating the Digital Markets Act, a law passed in 2022 that aims to regulate the practices of online gatekeepers. The investigation found that Apple was placing unlawful restrictions on companies that make games, music services, and other applications, preventing them from communicating with customers about sales and offers outside of the App Store.
Margrethe Vestager, the European Commission executive vice president in charge of competition policy, emphasized the importance of enforcing the Digital Markets Act, stating that Apple’s App Store policies make developers overly dependent on the company and hinder consumers from accessing better offers.
The potential penalty for Apple could be significant, with regulators threatening a fine of up to 10 percent of the company’s global revenue, which amounted to $383 billion last year. The charges are preliminary, and Apple has the opportunity to respond before a final decision is announced next March.
This latest development adds to the regulatory challenges facing Apple globally. In the United States, the company is facing a lawsuit from the Justice Department over alleged smartphone market monopoly practices. Additionally, Apple is embroiled in a legal battle over its right to take a 27 percent cut of app sales through third-party payment systems, a move that developers argue violates a 2021 judicial ruling.
The European Union’s actions against Apple are part of a broader effort to rein in the power of tech giants. The Digital Markets Act and the Digital Services Act give regulators more authority to intervene in the operations of companies like Apple, Google, and Meta. The outcome of these regulatory battles is likely to shape the future of the tech industry and the digital economy.
