The European Commission has accused Apple of stifling competition with its App Store policies, claiming the company is in breach of new tech rules under the Digital Markets Act. These rules mandate that developers should be able to inform customers about cheaper purchasing options and direct them to alternative offers. However, Apple's business terms allegedly restrict such communication and information sharing within apps.
Key Points
Accusations and Fines: In March, the Commission fined Apple 1.8 billion euros for abusing its market dominance by restricting app developers from informing users about cheaper music services. Apple plans to appeal the decision, arguing that the ruling lacks credible evidence of consumer harm and ignores the competitive nature of the market.
Regulatory Statements: Margrethe Vestager, an executive vice president of the European Commission, emphasized the importance of "steering" to reduce developers' dependency on gatekeepers' app stores and to make consumers aware of better offers. The Commission is also investigating Apple's contractual requirements for third-party app developers and app stores.
Apple's Response: Apple did not immediately respond to Business Insider's request for comment. However, spokesperson Julien Trosdorf told Politico that Apple is confident its plan complies with the law and that more than 99% of developers would pay the same or less in fees under the new business terms.
The ongoing investigation and fines highlight the tension between regulatory bodies and major tech companies like Apple regarding market practices and consumer rights.
