Apple under scrutiny for alleged non-compliance with EU's DMA
Apple is facing a series of "very serious" issues under the European Union's new rules aimed at curbing the power of Big Tech, according to Margrethe Vestager, the bloc's competition chief. In an interview with CNBC, Vestager revealed that regulators are formulating charges against the iPhone maker following a probe into Apple, Meta, and Alphabet by the European Commission. The investigation was initiated under the Digital Markets Act (DMA), a comprehensive tech legislation that came into effect this year.
Vestager surprised by Apple's alleged non-compliance
The probe raised several concerns about Apple's practices, particularly whether the firm is preventing businesses from informing their users, about cheaper alternatives for products or subscriptions outside of the App Store. Vestager expressed her surprise at these suspicions, stating, "We have a number of Apple issues, I find them very serious. I was very surprised that we would have such suspicions of Apple being non-compliant."
Vestager emphasizes importance of App Store compliance
Vestager underscored the significance of these issues, due to the substantial business conducted through the App Store and payment mechanisms. She assured that any non-compliance would be dealt with utmost priority, just like any other business. The results of this investigation are expected to be disclosed "hopefully soon," according to Vestager.
Apple could face significant penalties for DMA violations
Last week, Financial Times reported that Brussels is preparing to charge Apple under the DMA in relation to this probe. These charges would be preliminary and could potentially be mitigated by actions, taken by Apple to address regulators' concerns. If found in violation of DMA rules, Apple could be facing penalties amounting to up to 10% of its total worldwide annual turnover.
