EU accuses Apple of violating new legislations.

Jun 24, 2024 - 14:16
EU accuses Apple of violating new legislations.

European Union regulators have accused Apple of violating new legislation aimed at reining in large technology corporations.

 The European Commission, which oversees competition in the EU, stated that Apple's App Store stifles other markets, marking the first time it has found a corporation in violation of the Digital Markets Act. If the company does not follow the guidelines, it might risk a fine of up to 10% of its global revenue. Apple stated that it is "confident our plan complies with the law".

Apple stated that it is "confident our plan complies with the law".

The IT powerhouse has been given the opportunity to study the investigation's early findings, and it can escape a massive fine if it returns with a solution that is acceptable to the EU.

According to the European Commission, developers should be free to inform customers when cheaper app stores are available in addition to the one managed by Apple. The company charges an average of 30% commission to developers on its App Store. Previously, it was advised to enable alternatives in the EU in March. "We have reason to believe that the App Store rules not allowing app developers to communicate freely with their own users is in breach of the DMA," according to EU Commissioner Thierry Breton. The Commission further claims that Apple's fees "go beyond what is strictly necessary". "The App Store have the opportunity to utilize the capabilities that we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive rate."

Another of Apple's main arguments is that users benefit from strong security measures by sticking to the official App Store. In response, the Commission says it will happily discuss security issues.

Meanwhile,  Apple has also stated that it had made modifications over the last few months to ensure compliance with the DMA. "We estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created," according to a press release. "All developers doing business in the EU on the App Store have the opportunity to utilize the capabilities that we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive rate."

 Another of Apple's primary arguments is that using the official App Store provides users with enhanced security safeguards. In response, the Commission stated that it will gladly discuss security matters.

Separately, the European Commission has initiated another probe into Apple in connection with new developer contract terms. This focuses on three key areas: i. Apple charges developers a fee of €0.50 (£0.42) for each program downloaded outside of the program Store. ii. The amount of procedures that Apple implements for consumers who want to obtain programs from rival shops. iii. Whether Apple's qualifying requirements for alternative app store developers violate the DMA.

Apple says it revised its eligibility requirements in March to make it easier for developers to launch app shops. It also claims to have withdrawn the €0.50 cost for non-profit apps, such as those created by students, in May.