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European regulators say Apple is breaking new regulations with its App Store

  • The European Commission has accused Apple of restricting competition through its App Store policy.

  • Regulators say Apple is breaking technology rules by restricting promotion of alternative apps.

  • In March, the Commission fined Apple €1.8 billion, accusing it of abusing its dominant market position.

The European Commission has accused Apple of restricting competition through its App Store.

European regulators say Apple is violating new technology rules under the Digital Markets Act by preventing app developers from directing customers to App Store alternatives.

According to European regulations, developers should be able to freely inform customers about cheaper purchasing options and direct them to selected offers.

The commission argues that Apple’s commercial terms do not allow developers to do so, citing restrictions on communication and information sharing within the app.

Margrethe Vestager, executive vice-president of the European Commission, said: “Our initial position is that Apple does not allow full control. Control is key to ensure that app developers are less dependent on gatekeeper app stores and that consumers are aware of better offers.”

“The developer community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine those efforts,” she said.

Regulators said they also launched a new investigation into Apple’s contractual requirements for third-party app developers and app stores.

Apple said in a statement that the company has made “numerous changes to align with DMA in response to feedback from developers and the European Commission.”

“We are confident that our plan is legal and estimate that more than 99% of developers would pay Apple the same or lower fees under the new business terms we created,” a company spokesman said.

In March, the European Commission imposed a fine of EUR 1.8 billion on Apple, accusing the company of abusing its dominant position in the market. Regulators said Apple restricted app developers from telling users about other, cheaper music services.

In a press release issued at the time, Apple announced that it intended to appeal the decision.

The company said the Commission made the decision despite “failing to find credible evidence of consumer harm” and argued the ruling ignored “the reality of a market that is evolving, competitive and rapidly growing.”

Read the original article on Business Insider