Apple is imposing unfair restrictions on developers of applications for its App Store in violation of a new European Union law meant to encourage competition in the tech industry, regulators in Brussels said on Monday. The charges further escalated a tussle between Apple, which says its products are designed in the best interest of customers, and EU regulators, who say the company is unfairly using its size and considerable resources to stifle competition.
Apple is the first company to be charged for violating the Digital Markets Act, a law passed in 2022 that gives European regulators wide authority to force the largest “online gatekeepers” to change their business practices.After initiating an investigation in March, EU regulators said Apple was putting unlawful restrictions on companies that make games, music services and other applications. Under the law, Apple cannot limit how companies communicate with customers about sales and other offers and content available outside the App Store. The company faces a penalty of up to 10% of global revenue, a fine that could go up to 20% for repeat infringements. Apple reported $383 billion in revenue last year.
“Today is a very important day for the effective enforcement of the DMA,” said Margrethe Vestager, European Commission executive vice-president in charge of competition policy. She said Apple’s App Store policies make developers more dependent on the company and prevent consumers from being aware of better offers. EU regulators said the charges were preliminary and gave Apple a chance to respond. A final decision will be announced by next March.
Apple defended its practices, saying its rules and fees are a fair trade for providing such a large platform to reach consumers. Developers can point consumers to websites to make purchases outside the App Store, the company said.
“Throughout the past several months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission,” Apple said. “We are confident our plan complies with the law.”
