European Union regulators have accused Apple of breaking new rules on digital competition by preventing software developers on its App Store from steering users to other venues.
The Act is a sweeping set of regulations aimed at preventing tech giants from cornering digital markets.
The commission, the bloc’s executive arm, said Apple’s rules for its App Store “prevent app developers from freely steering consumers to alternative channels for offers and content”.
Apple now has a chance to respond to the findings, which the commission will assess. It must make a final decision on Apple’s compliance by March 2025. The company could face fines worth up to 10% of its global revenue, which could amount to billions of euro, or daily penalties.
The commission also kept up the pressure on Apple, simultaneously opening a new investigation into the company’s compliance with the DMA looking at new contractual terms that Apple has offered app developers.
Regulators zeroed in on a “core technology fee” of 50 euro cents (42p) that Apple is now charging developers for each time their apps are downloaded and installed from outside Apple’s App Store.
The DMA’s provisions open the way for alternative app stores to give consumers more choice. Rivals had criticised the fee, saying it would deter many existing free apps, which do not pay any fees, from jumping ship.
Apple said over the past several months, it “has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission”.
“We are confident our plan complies with the law,” the company said.
Margrethe Vestager, executive vice-president in charge of competition policy said: “Today is a very important day for the effective enforcement of the DMA: we have sent preliminary findings to Apple.
“Our preliminary position is that Apple does not fully allow steering. Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers. 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.
“The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts.”
Meanwhile, Thierry Breton, commissioner for internal market, said “Apple’s new slogan should be “act different”.”
“Today we take further steps to ensure Apple complies with the DMA rules. We have reason to believe that the AppStore rules not allowing app developers to communicate freely with their own users is in breach of the DMA.”
We are also opening a new case in relation to Apple’s new business terms for iOS. Without prejudice to Apple’s right of defence, we are determined to use the clear and effective DMA toolbox to finally open real opportunities for innovators and for consumers.”
Press Association/AP