Apple's App Store Practices Under EU Scrutiny
EU antitrust regulators have charged Apple with breaching EU tech rules by preventing app developers from directing consumers to alternative offers. The preliminary findings sent to Apple follow an investigation under the Digital Markets Act. The EU aims to ensure a level playing field for smaller rivals.
![Apple's App Store Practices Under EU Scrutiny](https://devdiscourse.blob.core.windows.net/aiimagegallery/13_06_2024_07_07_33_7186169.png)
Apple's App Store rules breach EU tech rules because they prevent app developers from steering consumers to alternative offers, EU antitrust regulators said on Monday, a charge that could result in a hefty fine for the iPhone maker. The European Commission, which also acts as the European Union's antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March.
The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and ensure a level playing field for smaller rivals. It has until March next year to issue a final decision. EU antitrust chief Margrethe Vestager cited issues with Apple's new terms.
"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 told a conference. The Commission said under most of the business terms, Apple allows steering only through 'link-outs', meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract.
It also criticised the fees charged by Apple for facilitating via the App Store the initial acquisition of a new customer by developers, saying they went beyond what was strictly necessary for such remuneration. Apple said it had made a number of changes in the past several months to comply with the DMA after getting 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 said in an email. The EU executive said it was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores and whether these were necessary and proportionate.
DMA breaches can cost companies fines as much as 10% of their global annual turnover.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
DGCA revises regulations to boost seaplane operations under UDAN scheme
Demands to ban exit polls 'childish', need for regulations and norms for pollsters: Axis My India Chief Pradeep Gupta.
EU Charges Apple Over App Store Rules: First Under Digital Markets Act
Developers chose Delhi NCR for maximum land deals in past 18 months: JLL
EU Charges Apple Under Landmark Digital Markets Act