EU Commission accuses Apple of breaching competition regulations
EU's tough new regulations might slap iPhone heavyweight Apple with mind-boggling fines. The Commission in Brussels has pointed out potential breaches, particularly surrounding the App Store and developer suppression. As of now, the repercussions remain unseen.
The American tech colossus, Apple, could be hit with billions in penalties: The EU Commission in Brussels declared in a preliminary announcement that Apple is flouting competition rules designed for digital companies with its App Store. According to the Commission's findings, Apple allegedly obstructs App developers from distributing their products via alternatives to the App Store.
App Store's business terms apparently forbid vendors such as Netflix or Spotify from disclosing pricing details and managing subscriptions inside their apps directly. Apple also reportedly charges fees in excess of the bare minimum.
This marks the first time EU competition authorities have put forth specific grievances against a company under the Digital Markets Act (Digital Markets Act, DMA), effective in March. Brussels has until the end of March next year to wrap up the investigations. If the claims are verified, Apple stands to face potential fines in the billions.
With the Digital Markets Act (Digital Markets Act, DMA), the EU intends to curb the market strength of so-called internet gatekeepers, essentially companies that act as gatekeepers online. The regulations apply not only to Apple but also to Google's parent company Alphabet, Amazon, TikTok's parent ByteDance, Meta, and Microsoft. Probes against Google and Meta are already underway.
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The EU Commission's allegations against Apple involve App Store-related practices, such as restricting app developers from revealing pricing details and managing subscriptions directly. if Apple is found to be in breach of competition rules, they could face billions in fines under the Digital Markets Act.
