The European Commission has launched an investigation into Apple for potential violations of the Digital Markets Act (DMA). The DMA is a set of legislation that aims to reign in the power of big tech corporations.
Margrethe Vestager, EU antitrust chief, has stated that Apple’s new terms currently fall short of compliance. If Apple fails to address the concerns, it could receive a hefty fine, up to 10% of its annual global turnover.
App Store Rules Limit App Developers
Under the regulation of the DMA, third-party app developers that distribute their apps via the App Store, should be able to inform their customers of cheaper purchasing possibilities, free of charge.
The European Commission claims the Apple App Store currently prevents app developers from steering customers to these alternative offers. As such, an investigation into potential DMA violations has started.
The Commission takes issue with three different aspects of Apple’s business terms:
- Apple does not allow developers to freely steer their customers; alternative pricing options cannot be provided within the app.
- Developers are limited to use ‘link-outs’ only: they may only include a link within their app to redirect customers elsewhere.
- The fees charged for direct facilitation through the App Store go beyond what is strictly necessary.
Apple vs. EU: An Ongoing Clash
In response to the investigation, Apple has stated that they’ve introduced new measures to be compliant with EU requirements. However, the clash between the European Commission and big tech companies, including Apple, continues.
Last week, Apple informed the public that it would delay the rollout of its new AI features for iPhone in Europe, due to similar regulatory concerns. The EU’s competition legislation requires Apple to ensure that rival products can also function on its devices.
Apple’s counter-argument is that the DMA regulations compromise the integrity of Apple’s products and will put user privacy at risk. As of now, it’s unlikely Apple’s AI features will arrive in Europe before 2025.
