The European Union regulators recently announced that Apple is violating the new tech rules by preventing customers of its App Store from being directed to alternative platforms. This breach of the Digital Markets Act (DMA) is a significant concern for the EU’s executive arm, the European Commission. The probe into Apple’s anti-steering rules has raised questions about the company’s practices regarding app developers and consumer choice.
One of the main issues highlighted by regulators is Apple’s restriction on steering customers to alternative channels for offers and content. The DMA specifically prohibits tech firms from blocking businesses from informing users about cheaper options or subscriptions outside of the official app store. Apple’s current method allows developers to provide a link that redirects users to a webpage for transactions, but this process is heavily regulated by Apple’s rules, limiting developers’ freedom to communicate and promote offers.
In addition to the anti-steering rules, the European Commission also raised concerns about the fees Apple charges developers for acquiring new customers through the App Store. The commission suggested that these fees exceed what is considered necessary, hinting at possible antitrust violations. This issue adds to the ongoing scrutiny Apple faces in the EU, following a substantial antitrust fine earlier this year related to the distribution of music streaming apps.
Apple has made some adjustments to its App Store operations in the EU in response to the DMA, allowing apps to be downloaded from external sources and third-party app stores. However, the commission highlighted that Apple still imposes a “core technology fee” for each app installation from sources other than its own store, raising questions about compliance with the new regulations. Regulators are closely monitoring Apple’s efforts to facilitate access to alternative app stores and apps on their devices.
Looking ahead, Apple could face fines of up to 10% of its global annual turnover if found in violation of the DMA. The commission is investigating whether Apple’s eligibility requirements for offering alternative app stores comply with the tech law, signaling continued scrutiny of the company’s practices. As the investigation unfolds, the EU regulators will assess Apple’s adherence to the DMA and ensure fair competition in the digital marketplace.
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