European Union regulators have accused Apple of breaching new laws designed to regulate big tech companies, marking the first time a company has been found in violation of the Digital Markets Act (DMA). The European Commission, which oversees competition in the EU, alleges that Apple’s App Store squeezes out rival marketplaces and charges developers an average of 30% commission.
Apple faces a potential fine of up to 10% of its global revenue if it fails to comply with the rules. The tech giant has the opportunity to review the investigation’s preliminary findings and propose a solution to avoid the hefty fine.
The European Commission insists that developers should be able to inform customers about cheaper app stores beyond Apple’s platform. Apple has made changes in recent months to comply with the DMA, stating that more than 99% of developers would pay the same or less in fees under the new business terms.
In addition to the breach of the DMA, the European Commission has opened another investigation into Apple regarding new contractual terms for developers. This investigation focuses on a fee Apple charges developers for apps downloaded outside of the App Store, the steps required to download apps from alternative stores, and the eligibility criteria for alternative app store developers.
Apple has made changes to its eligibility criteria and removed the fee for apps that make no money, such as those developed by students. The company maintains that users benefit from strong security measures by using the official App Store, but the Commission is willing to discuss security concerns.
The outcome of these investigations could have significant implications for Apple and its operations in the EU. Stay tuned for updates on this developing story.
