London: European Union antitrust regulators leveled accusations against Apple on Monday, alleging breaches of the bloc’s tech regulations and initiating a separate investigation into new fees imposed on app developers.
The European Commission, which oversees EU antitrust and technology policies, disclosed that it had forwarded preliminary findings to Apple following an inquiry launched in March. This marks the first charge under the Digital Markets Act (DMA), designed to curb the dominance of Big Tech and ensure fair competition for smaller players. A final decision is expected by March next year, potentially resulting in a fine up to 10% of Apple’s global annual turnover for DMA violations.
Margrethe Vestager, EU antitrust chief, criticized Apple’s new terms, asserting they fail to comply with the DMA by restricting app developers’ communication with users and contract negotiation capabilities. She emphasized that Apple could avoid fines by amending its business practices.
“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,” Vestager stated at a conference, clarifying that compliance decisions rest with Apple.
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Apple responded, citing recent modifications made in response to feedback from developers and the Commission, affirming ongoing dialogue and compliance efforts.
The Commission scrutinized Apple’s business terms, highlighting restrictions on app developers’ ability to steer customers through ‘link-outs’ and criticizing fees charged via the App Store for customer acquisition.
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In addition to the ongoing DMA inquiry, the EU launched a probe into Apple’s new contractual requirements for third-party app developers and app stores. This investigation focuses on the core technology fee, user journey limitations for alternative app stores on iPhones, and eligibility criteria for direct app distribution.
Apple introduced these measures in March, drawing scrutiny from major developers like Epic Games over fairness concerns. Vestager also addressed Apple’s recent announcement delaying AI-powered features in the EU, questioning potential anticompetitive implications as attributed by Apple to the DMA.
