Apple hit by new EU warning over alleged abuses in the App Store

EU regulators have issued a new warning that could result in bigger fines – just months after they fined the iPhone maker €1.8 billion for thwarting competition in music streaming.

The European Commission said on Monday that Apple must allow app developers to direct users to cheaper deals and offers outside the App Store to comply with the Digital Markets Act, which sets out a series of dos and don’ts for some of the world’s biggest technology platforms.

The Brussels-based regulator also said it had launched a new investigation into Apple’s new App Store fees charged to developers in the EU to see whether they were compliant with the DMA. Failure to comply with the law may result in fines for the company – up to 10% of global annual revenues.

Monday’s announcement – an initial step – follows a similar move the EU took against Apple in March under standard competition rules, which came with the first wave of penalties.

The Brussels-based regulator is expected to make a final decision on the DMA by the end of March 2025. The move could spark another legal battle between Apple and the EU in Community courts.

“We are confident that our plan complies with the law, and we estimate that more than 99% of developers would pay Apple the same or lower fees under the new business terms we have created,” Apple said in a statement in response to the EU announcement.

The EU’s focus on Apple’s alleged abuse of its dominant position in the app store was initially sparked by a complaint filed in 2019 by Spotify Technology SA. The Swedish website claimed that it was forced to raise the prices of its monthly subscriptions to cover costs related to Apple’s alleged control over the operation of the app store.

Under the DMA, it is illegal for certain services operated by companies such as Apple, Alphabet Inc.’s Google, Meta Platforms Inc., Microsoft Corp. and Amazon.com Inc. favored their own services over those of competitors. They are prohibited from combining personal data across services, from using data collected from third-party sellers to compete with them, and must allow users to download applications from competing platforms.

In addition to questioning the regulatory designation of a number of its services, Apple accused the DMA of issuing a separate statement on Friday aimed at halting the deployment of artificial intelligence technology in the 27-nation EU.

The company said it will block Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing from being available to users in the EU this year as the DMA allegedly forces it to lower the security level of its products and services.