EU accuses Apple of breaking tech competition rules, threatens large fine

The European Union has taken the first step in enforcing its Digital Markets Act (DMA) by accusing Apple of violating the legislation. The European Commission, the EU's technology and competition regulator, announced that its investigation into Apple's App Store found that the company does not allow app developers to freely steer customers to offerings outside the App Store, which is a violation of the DMA.

In addition to the accusation regarding the App Store, the European Commission has also launched another investigation into whether Apple's new contractual requirements for third-party app developers violate the DMA. This includes the core technology fee, the user journey to download and install alternative app stores on iPhones, and the eligibility requirements for developers to offer alternative app stores or distribute apps directly from the web on iPhones.

Apple rolled out the new fees in the EU in March, which led to criticism from companies like Epic Games. However, Apple remains confident that its current approach complies with the law and estimates that more than 99% of developers will pay the same or less in fees under the new business terms.

If found guilty of violating the DMA, Apple could face a fine of up to 10% of its annual global turnover. The DMA is aimed at promoting competition in the digital economy by leveling the playing field for smaller rivals to take on Big Tech firms. This accusation against Apple is part of a broader effort by the EU to hold tech companies accountable for anti-competitive practices.


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