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EU officially declares Apple violated the Digital Markets Act after multiple negotiations.

TraderKnows
TraderKnows
06-24

The debate between Apple and the EU over the Digital Markets Act has been ongoing for quite some time. Apple has consistently refused to cooperate, promising improvements on the surface but taking no actual steps.

The European Union stated on Monday that Apple has violated new comprehensive technology regulations because it does not allow App Store users to be directed to alternative options.

The EU’s executive body, the European Commission, also disclosed that it has launched a new investigation into Apple's new contract terms.

In March this year, the EU began investigating Apple, Alphabet, and Meta Platforms under the Digital Markets Act (DMA), which aims to curb the dominance of large tech companies. One focus of the investigation is the anti-steering rules, which prevent companies from blocking businesses from informing users about cheaper alternatives or external subscription information.

On Monday, regulators stated in preliminary investigation results that Apple violated the DMA because its App Store rules “prevent app developers from freely directing consumers to other channels for offers and content.”

According to the Commission, Apple allows steering through only one system, where developers can provide a webpage link where users can purchase content, such as subscriptions. However, this system is subject to several restrictions imposed by Apple, which prevent app developers from communicating, promoting offers, and finalizing contracts through their chosen distribution channels.

Regulators also criticized the fees Apple charges developers for acquiring new customers through the App Store, noting that these fees “exceed what is necessary.” The Commission did not specify what it considers the "necessary range."

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Compensation refers to the act of providing economic restitution to the affected party by the defaulting party or the responsible party in the event of a breach, negligence, or other causes resulting in a loss to the other party in financial or commercial transactions.

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