Apple is on the news once again, and yes, the title might have explained it to you. The European Commission (EU) is preparing to charge Apple for allegedly limiting competition in its very own App Store, and this might attract mighty daily charges for the American Tech giant.
Update on 24th June 2024: The European Union Commission has sent preliminary findings to Apple and opens additional non-compliance investigation against Apple under the Digital Markets Act
Apple might be fined up to $1 Billion in daily charges by the EU if found guilty
This also marks the first time the EU’s new Digital Markets Act (DMA) has been used against a major tech company. As per the Financial Times report, the EU found that Apple is not allowing app developers to direct users to outside offers without charging them fees. This aligns with Apple’s plans to add new fees and restrictions for downloads outside the App Store.
The heart of the matter revolves around the European Commission designating six major companies as gatekeepers under the DMA, including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, back in October 2023. Among the changes ordered by the DMA is Apple’s obligation to allow users to install applications from sources other than the App Store.
The rule states that if a gatekeeper doesn’t follow the DMA’s requirements, the Commission can fine the company up to 10% of its global revenue. If the company repeatedly breaks the rules, the fine can increase to as much as 20%. With these rules in place, Apple not following the policies mapped is not going to be easy for them.
The EU has opened an additional non-compliance investigation against Apple
On June 24, Executive Vice-President of the European Commission Margrethe Vestager posted on X that there is concern that Apple’s new business model makes it excessively difficult for app developers to operate as alternative marketplaces and reach their end users on iOS and hence, the Commission opened a new non-compliance procedure against Apple.
Preliminary findings by the Commission indicate that Apple’s current terms of business prevent developers from informing customers about cheaper alternatives to purchasing or promoting offers outside of the App Store.
While Apple does allow “link-outs” where developers are allowed to redirect consumers to external websites, these are subject to significant restrictions that limit the possibility for a developer to communicate, promote offers, or complete transactions via the channel of their choice.
If Apple is found guilty of non-compliance, it could face daily charges from the EU, with fines of up to 5% of its global turnover, which accounts for up to $1 Billion in fines. Well, Alphabet and Meta are also under the radar currently, with the details looking to unfold soon.
Read other related articles:
- Apple Design Awards 2024 winners are announced
- Microsoft, Meta, and X oppose Apple to stand with Epic over court ruling
- Apple expands access to streaming games and apps worldwide via the App Store
- Apple is set to introduce sideloading for iOS devices in the European Union
For more Mobile Gaming news and updates, join our WhatsApp Group, Telegram Group, or Discord server. Also, follow us on Instagram, Twitter and Google News for quick updates.
