June 24th, 2024

European Union regulators accuse Apple of breaching the bloc's tech rules

EU accuses Apple of Digital Markets Act violations for restricting App Store alternatives and charging high developer fees. New probe initiated on contractual terms. Apple defends changes, faces potential fines up to 10%.

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European Union regulators accuse Apple of breaching the bloc's tech rules

European Union regulators have accused Apple of violating the Digital Markets Act by restricting customers of its App Store from accessing alternatives and charging excessive fees to developers. The EU has initiated a new probe into Apple's contractual terms with developers. Under the Digital Markets Act, tech companies are prohibited from blocking businesses from informing users about cheaper options or subscriptions outside the app store. Apple's rules prevent app developers from freely directing consumers to alternative channels for offers and content. The regulators found that the fees Apple charges developers for acquiring new customers exceed what is necessary. Apple stated that it believes its changes comply with the law and that the majority of developers would pay the same or less under the new terms. If found in breach, Apple could face fines of up to 10% of its global annual turnover. The EU has been scrutinizing Apple, recently imposing a 1.8 billion euro antitrust fine. Apple's adjustments to the App Store in the EU include allowing downloads from websites and third-party app stores, but concerns remain about certain practices, such as the core technology fee for downloads outside the App Store.

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