- The EU’s executive branch, the European Commission, also announced that it has launched a fresh investigation into Apple’s new developer contract conditions.
- In March, the EU launched an inquiry against Apple, Alphabet, and Meta by the historic new legislation called the Digital Markets Act (DMA), which attempts to curb the influence of large technology companies. One of the main areas of the investigation’s attention was so-called anti-steering regulations. Tech companies are not permitted by the DMA to prevent companies from informing their consumers about less expensive alternatives for their goods or about subscriptions that aren’t available via an app store.
- Authorities declared on Monday that Apple violated the DMA because its App Store policies “prevent app developers from freely steering consumers to alternative channels for offers and content,” according to their preliminary findings.
Apple has been contacted by CNBC for a response.
- According to the Commission, Apple only permits directing via a system where app developers may provide a link that directs users to a website where they can subsequently buy content, such as a subscription. As per the Commission’s observation, the process is hindered by many constraints imposed by Apple, which prohibit app developers from marketing offers, communicating, and finalizing contracts via their preferred distribution channel.
- Additionally, the authorities said that Apple charges developers fees that “go beyond what is strictly necessary” for the initial acquisition of new users via the App Store. What constitutes a “strictly necessary” charge was not made public by the Commission.
- If Apple is found to violate the DMA, it may be subject to a penalty equal to up to 10% of its annual global revenue.
- This year, the EU has started targeting the US tech titan. In March, authorities fined Apple 1.8 billion euros ($1.93 billion) for violating antitrust laws by exploiting its monopoly in the music streaming app distribution business. That study also focused on the steering rules.
EU launches a second DMA investigation
- In front of the DMA, Apple made significant modifications to its App Store in the European Union this year. The massive Cupertino company now allows users to download programs to their devices from third-party app stores and websites.
- However, the Commission also voiced reservations over a few of Apple’s recent initiatives.
- For downloads from sources other than its program Store, Apple continues to impose a “core technology fee” of 50 euro cents ($0.54) for every installed program. According to the Commission, it is investigating whether this conforms with the DMA.
- Authorities are also examining whether Apple’s requirements for customers to download other app stores or programs adhere to the regulations of the bloc.
- The Commission will also investigate if the IT legislation is being followed about “eligibility requirements related to the ability to offer alternative app stores or directly distribute apps from the web on iPhones.”
Source:
cnbc
