The European Union (EU) regulators announced on Monday that Apple is in breach of the Digital Markets Act (DMA), a set of new tech regulations.
This decision follows an investigation that highlighted Apple’s restrictive practices on its App Store, preventing customers from being directed to alternative purchasing options.
EU’s findings on App Store practices
The European Commission stated that Apple’s App Store rules prevent app developers from freely steering consumers to alternative channels for offers and content.
This preliminary finding is part of a broader investigation under the DMA, which aims to curb the power of Big Tech firms, including Apple, Alphabet, and Meta.
The DMA prohibits tech companies from blocking businesses from informing users about cheaper options or subscriptions available outside of their app stores.
According to the Commission, Apple only allows app developers to provide links that direct users to a webpage where they can purchase content.
This process is heavily restricted, limiting developers’ ability to communicate, promote offers, and finalise contracts through their preferred distribution channels.
Fees and contractual terms under scrutiny
Additionally, the Commission criticised the fees Apple charges developers for acquiring new customers via the App Store. These fees are considered to exceed what is strictly necessary, although the Commission did not specify what constitutes a “strictly necessary” fee.
This aspect of Apple’s practices is also part of the ongoing scrutiny under the DMA.
In March, the EU launched an investigation into Apple, Alphabet, and Meta, focusing on anti-steering rules among other concerns. These rules prevent businesses from guiding consumers towards alternative purchasing options, which the DMA aims to address.
The Commission’s preliminary findings against Apple mark a significant step in enforcing these new regulations.
Ongoing probe and potential implications
The investigation into Apple’s practices is ongoing, with the EU also opening a new probe into Apple’s contractual terms with developers.
These developments indicate that regulators are intensifying their efforts to ensure compliance with the DMA, which seeks to promote fair competition and consumer choice in the digital market.
Apple has been contacted for comment on these findings but has not yet responded. The outcome of this investigation could lead to significant changes in how Apple operates its App Store, potentially easing the restrictions on app developers and providing more options for consumers.
The EU’s preliminary findings against Apple for breaching the Digital Markets Act highlight the ongoing regulatory efforts to rein in the power of major tech firms.
By addressing restrictive practices on the App Store, the EU aims to foster a more competitive and open digital market.
The final outcomes of these investigations will be closely watched, as they could set important precedents for the tech industry.
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