Apple is under scrutiny by EU antitrust regulators for its App Store rules, which allegedly prevent app developers from directing consumers to alternative offers, reports Reuters. This accusation, if upheld, could lead to significant fines for the tech giant.
The European Commission, the EU’s regulatory body for antitrust and technology issues, announced it had shared its preliminary findings with Apple following an investigation initiated in March.
This case marks the first charge under the European Commission’s new Digital Markets Act (DMA), designed to curb the dominance of major tech firms and create fairer conditions for smaller competitors. The Commission has until March next year to issue a final decision on the matter.
Margrethe Vestager, the EU antitrust chief, highlighted concerns with Apple’s recent policy changes. “As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” she stated at a conference.
The Commission criticized Apple’s policy that permits app developers to steer customers only through ‘link-outs.’ This means developers can include a link in their app that redirects users to a web page where they can finalize a contract. Additionally, the Commission pointed out that the fees Apple charges for facilitating initial customer acquisitions via the App Store are excessively high.
Apple responded by noting that it had made several changes in recent months to align with the DMA after receiving feedback from developers and the Commission. “We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the company stated in an email.
The European Commission also revealed it is launching a separate investigation into Apple’s new contractual requirements for third-party app developers and app stores, questioning their necessity and proportionality.
Under the DMA, companies found in breach can face fines up to 10% of their global annual revenue, posing a substantial financial risk for Apple if the charges are confirmed.
