Apple in breach of Europe's new digital law
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The news: The European Union has informed Apple that its App Store is violating the bloc’s Digital Markets Act (DMA), making Apple the first company to run afoul of the new sweeping digital competition law.
The numbers: The Commission may fine Apple up to 10% of its global revenue, which was USD383 billion ($575 billion) last year, potentially rising to 20% for repeated violations.
The context: In a statement, the European Commission said Apple’s App Store rules breach the DMA by preventing developers from directing consumers to alternative payment methods and by charging excessive fees for in-app purchases made within seven days of signing up via external links.
The preliminary finding follows the EU’s €1.8 billion antitrust fine imposed on Apple in March for restricting streaming app developers.
A final decision is expected by 25 March 2025.
Apple last week said it would delay the roll out of planned artificial intelligence features in Europe due to regulatory concerns driven by the DMA.
What they said: The Commission also said it will investigate Apple's multi-step process for downloading alternative app stores on iPhones, as well as its new Core Technology Fee, which charges developers based on app downloads.
Apple said it has made changes in the past few months to ensure compliance with the DMA, claiming most developers will pay the same or lower fees under the new terms.
“Today is a very important day for the effective enforcement of the DMA,” Margrethe Vestager, the Commission's executive vice president in charge of competition policy said in a statement.
“The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts.”
The sources: European Commission statement, Quartz
