European Union regulators have recently declared that Apple has violated new tech rules by not allowing customers of its App Store to be directed to alternatives. This breach of rules falls under the Digital Markets Act (DMA), which aims to regulate the power of Big Tech companies like Apple, Alphabet, and Meta. The focus of the investigation is on the anti-steering rules that Apple has in place, restricting businesses from informing users about cheaper options for products or subscriptions outside of the App Store.
The EU regulators have found Apple to be in breach of the DMA due to its App Store rules that hinder app developers from freely guiding consumers to alternative channels for offers and content. Although Apple permits some steering through links that direct users to webpages for purchases, there are significant restrictions imposed by Apple that limit developers’ ability to communicate, promote offers, and finalize contracts independently. Additionally, the fees charged by Apple to developers for acquiring new customers via the App Store are deemed to exceed what is considered strictly necessary, according to the commission.
If Apple is found to be in violation of the DMA, it could face fines of up to 10% of the company’s total global annual turnover. The recent antitrust fine of 1.8 billion euros imposed on Apple in March further emphasizes the scrutiny that the tech giant is under in the EU. Apple has made adjustments to its App Store practices in the EU to comply with the DMA, such as allowing app downloads from websites and third-party app stores. However, concerns have been raised about the “core technology fee” charged by Apple for each app installed outside of its App Store, as well as the eligibility requirements for offering alternative app stores on iPhones.
The ongoing investigations and regulatory actions against Apple in the EU highlight the challenges faced by tech companies in navigating complex regulatory environments. Apple’s compliance with the DMA and other tech laws will shape its future operations in the European market and beyond. As regulators continue to scrutinize Big Tech firms for anticompetitive practices and violations of consumer rights, companies like Apple will need to adapt their business practices to align with evolving regulatory standards. The outcome of the investigations into Apple’s violations of the DMA will have significant implications for the tech industry as a whole.