EU Commission accusedly finds Apple breaching competition norms
Potential penalties of billions for Apple: The EU Commission in Brussels has suggested that Apple is violating the competition rules for digital companies by impeding App developers. In a preliminary statement, the Commission claimed that Apple restricts developers from distributing their products through channels other than the App Store.
If Apple is found guilty of these violations, it could face hefty fines running into billions. According to the Commission's evaluation, the App Store's business terms prohibit providers, like Netflix and Spotify, from providing pricing details and handling subscriptions directly within their apps. Additionally, Apple allegedly charges fees that are deemed exceeding what's necessary.
This is the first instance of the EU competition authorities leveling specific accusations against a company under the Digital Markets Act (Digital Markets Act, DMA), which came into effect in March. The investigations must be completed by the end of March next year. If the allegations prove true, Apple faces billions in penalties.
The Digital Markets Act (Digital Markets Act, DMA) is designed to curb the market influence of internet gatekeepers (gatekeepers) such as Apple, Alphabet (Google's parent company), Amazon, TikTok parent company ByteDance, Meta, and Microsoft. Investigations against Google and Meta are already ongoing.
According to the DMA, developers who distribute their apps via Apple's App Store should be allowed to inform users about cheaper purchasing alternatives, direct them to these offers, and facilitate the purchasing process. However, none of Apple's business terms permit developers to execute these actions.
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If Apple is found to be in violation of the EU Commission's rules, they could potentially lose access to the EU market for their App Store, as stipulated by the DMA. App developers in the EU, such as those offering services like Netflix and Spotify, have outlined concerns about Apple's App Store policies, which the EU Commission believes breach competition norms.
