European Union regulators have charged Apple with violating the bloc’s new digital competition rules, accusing the tech giant of restricting app makers from directing users to cheaper options outside of its App Store.
The European Commission’s preliminary findings suggest that Apple’s restrictions on developers using the App Store have breached the Digital Markets Act, a set of regulations aimed at preventing tech “gatekeepers” from dominating digital markets.
Apple is also under investigation for other potential breaches of the Digital Markets Act, including allegations that it is not allowing iPhone users to easily change web browsers, along with separate cases involving Google and Meta.
Pressure on Apple to remove competitive barriers surrounding its iPhone franchise is mounting, with the U.S. Justice Department filing an antitrust lawsuit against the company earlier this year.
Under the Digital Markets Act, app developers must be allowed to inform customers of cheaper purchasing options and direct them to those offers, which Apple’s App Store rules currently prevent.
Apple has the opportunity to respond to these findings, and the European Commission must make a final decision on the company’s compliance by March 2025. Potential fines could reach up to 10% of Apple’s global revenue.
The company has recently raised concerns about excluding the European market from new artificial intelligence features due to the perceived onerous regulations in the region. However, the European Commission continues to put pressure on Apple, launching a new investigation into the contractual terms it is offering to app developers.
Regulators are focusing on a “core technology fee” that Apple charges developers for downloads and installations from outside the App Store, with rivals criticizing the fee for discouraging free apps from moving to alternative app stores.
Apple stated that it has made changes to comply with the Digital Markets Act and remains confident in its plan’s legality. The company also emphasized the benefits of its new business terms for developers operating in the EU.
The EU has closed a previous investigation into Apple’s in-app purchasing system to concentrate on the probe under the Digital Markets Act to ensure clarity on Apple’s obligations.
