The European Commission has accused Apple of violating competition rules with its App Store. According to the commission, the company is not complying with new tech regulations outlined in the Digital Markets Act. This is because Apple does not allow app developers to direct customers to alternative app stores or cheaper purchasing options.
Under European guidelines, app developers should have the freedom to inform customers about better offers and alternatives to the App Store. However, Apple’s business terms restrict developers from doing so by limiting communication and information sharing within the app. This prevents effective steering of customers, says Margrethe Vestager, an executive vice president at the European Commission.
The commission has launched a new probe into Apple’s contractual requirements for third-party app developers while Apple maintains that its business practices are lawful and fair. The company believes that more than 99% of developers would experience similar or lower fees under the new terms implemented by Apple.
In March, the European Commission fined Apple 1.8 billion euros for alleged market dominance abuses. The company responded by expressing its intention to appeal the decision, arguing that the ruling overlooked evidence of consumer harm and dismissed the vibrant and competitive nature of the market.
This latest development adds another layer of scrutiny for Apple as it continues to navigate regulatory challenges in Europe and other parts of the world.
