EU charges Apple with breaching new competition rules

Apple has been charged with breaching new EU laws designed to ensure that leading tech companies don’t use their dominant positions to stifle competition in digital markets.

Along with Alphabet, Amazon, ByteDance, Meta and Microsoft, Apple is one of the so-called gatekeepers required to comply with all obligations under the Digital Markets Act, which came into effect in March.

An infringement could result in the European Commission imposing a fine of up to 10% of a company’s total worldwide turnover.

“Today, the European Commission has informed Apple of its preliminary view that its App Store rules are in breach of the Digital Markets Act (DMA), as they prevent app developers from freely steering consumers to alternative channels for offers and content,” the competition regulator said.

“In addition, the Commission opened a new non-compliance procedure against Apple over concerns that its new contractual requirements for third-party app developers and app stores, including Apple’s new ‘Core Technology Fee’, fall short of ensuring effective compliance with Apple’s obligations under the DMA.”

Apple has 12 months from the opening of proceedings on March 25 to comply before it faces fines, which can increase to 20% in case of repeated infringements.

“For too long Apple has been squeezing out innovative companies — denying consumers new opportunities and choices,” Thierry Breton, the European commissioner for the internal market, wrote on X.

“Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers,” commented Margrethe Vestager, executive vice president in charge of competition policy.

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“We have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading.

“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.”