European Union antitrust regulators have leveled accusations against Apple, alleging violations of the bloc's tech regulations.
The EU accuses Apple of breaching tech rules
This charge could lead to significant penalties for the iPhone maker, which is concurrently under investigation for imposing new fees on app developers.
The European Commission, responsible for both antitrust oversight and technology regulation in the EU, has communicated its initial findings to Apple following an investigation initiated in March. This marks the first charge under the Digital Markets Act (DMA), a landmark piece of legislation aimed at curbing the dominance of big tech and fostering fair competition among smaller players. The Commission is slated to issue a final decision by March next year, with potential fines amounting to as much as 10% of Apple's global annual turnover for DMA violations.
Margrethe Vestager, the EU's antitrust chief, highlighted concerns regarding Apple's updated terms, asserting that they do not fully comply with the DMA. She emphasized that Apple has the opportunity to rectify these issues to avoid fines, stressing that the decision on how to comply rests with the company.
Apple's Response and Compliance Efforts
Apple responded by stating it has already made several adjustments over recent months to align with DMA requirements, incorporating feedback from both app developers and the Commission. The company reiterated its commitment to an ongoing dialogue with EU authorities.
The Commission scrutinized Apple's fee structure within the App Store, particularly criticizing charges related to customer acquisition facilitation by developers. It was argued that these fees exceeded the necessary remuneration levels.
Additionally, the EU launched an investigation into Apple's newly imposed contractual obligations for third-party app developers and app stores. This inquiry focuses on evaluating the necessity and proportionality of these requirements, including the core technology fee and eligibility criteria for offering alternative app stores or distributing apps directly from the web on iPhones.
Controversy Over AI-Powered Features Delay
Vestager also expressed concern over Apple's decision to delay the launch of AI-powered features in the EU, which the company attributed to compliance concerns with the DMA. She criticized Apple's implication that such delays were prompted by regulatory issues, suggesting potential anti-competitive implications.
The EU's actions against Apple underscore its commitment to enforcing fair competition and regulatory compliance within the digital marketplace. The outcomes of these investigations will likely shape future interactions between tech giants and regulatory bodies, influencing industry practices and consumer protections across the European Union.
