Apple App Store practices under EU scrutiny

Apple’s App Store rules violate EU technology rules because they prevent app developers from directing consumers to alternative offers, EU competition regulators said on Monday, an allegation that could result in a hefty fine for the iPhone maker. The European Commission, which also serves as the EU’s antitrust and technology regulator, said it had sent Apple its preliminary findings following an investigation launched in March.

The charge against Apple is the first by the Commission under the landmark Digital Markets Act, which aims to curb the power of Big Tech and ensure a level playing field with smaller rivals. He has until March next year to issue a final decision. The head of the EU antitrust office, Margrethe Vestager, cited problems related to Apple’s new conditions.

“As it stands, we believe that these new terms do not allow app developers to communicate freely with end users and enter into contracts with them,” she said at the conference. The commission found that in most commercial terms Apple only allows control via “link-outs”, meaning app developers can include a link in their app that redirects the customer to a website where he or she can enter into a contract.

He also criticized the fees Apple charges for enabling developers through the App Store to initially acquire a new customer, saying they go beyond what is strictly necessary for such remuneration. Following feedback from developers and the Commission, Apple said it has made a number of changes over the past few months to ensure compliance with DMA requirements.

“We are confident that our plan is legal and estimate that over 99% of developers would pay Apple the same or less in fees under the new business terms we created,” the company said in an email. The EU director said he was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores and whether they are necessary and proportionate.

DMA violations can cost companies fines of up to 10% of their global annual turnover.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)