Apple accused of violating EU's Digital Markets Act regulations
Apple has been charged with violating the European Union's Digital Markets Act (DMA), marking the first instance of a company facing such allegations. The European Commission, in its preliminary ruling on Monday, stated that Apple's App Store "steering" policies infringe upon the DMA rules designed to foster competition. Margrethe Vestager, who oversees competition policy in Europe, said, "Our preliminary position is that Apple does not fully allow steering."
DMA rules and Apple's potential penalties
The DMA requires gatekeepers like Apple to allow app developers to direct consumers to offers outside their app stores, free of charge. The charges against Apple were initiated after the EU's competition authority opened several investigations earlier this year. Apple has until March 2025 to respond to the European Commission's preliminary assessment. If found guilty, it could face a fine of up to 10% of its annual global revenue, which could amount to $38 billion based on last year's figures.
New investigation into Apple's support for alternative marketplaces
The European Commission has also initiated a new investigation into Apple's support for alternative iOS marketplaces in Europe. This includes an examination of the contentious Core Technology Fee charged to developers, and the complex process necessary for users to install third-party marketplaces. Vestager added, "We have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading."
EU allegations and Apple's response
The EU alleges that Apple's App Store rules restrict developers from providing pricing information within their apps, or freely communicating with customers about offers outside the App Store. The bloc also claims that the fees pertaining to the App Store exceed what is necessary. Despite these charges, Apple claims that its policies comply with the DMA and that it has incorporated feedback from EU officials and developers.
