Apple has been found to be breaking sweeping new EU laws designed to allow smaller companies to compete and allow consumers to find alternative, cheaper apps in the tech business’ app store.
The European Commission, which also acts as the EU’s antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March.
In preliminary findings, against which Apple can appeal, the European Commission said it believed its engagement rules did not comply with the Digital Markets Act (DMA) “as they prevent app developers from freely directing consumers to alternative channels.” for offers and content”.
In addition, the commission has opened a new non-compliance procedure against Apple over fears that its new contractual terms for third-party app developers will also not comply with the requirements of the DMA.
It is the third non-compliance investigation opened by the commission since the laws came into effect last year.
As part of the investigation, the commission is examining the 0.50 cent charge, or “core technology fee,” that Apple charges each time a developer app is installed on a phone.
The allegations that Apple is breaking EU law are the first against a technology company under the DMA, landmark legislation introduced last August to ensure that six designated “very large online platforms” including Google, Amazon , Meta and ByteDance (TikTok), compete fairly.
The investigation comes three months after the commission opened its first investigation into Apple’s approach to phone app providers.
In its preliminary conclusions on its previous investigation, the EU has reiterated that the new digital laws require Apple to ensure that developers can “inform their customers free of charge about cheaper alternative purchasing possibilities, guide them towards those offers and allow them to make purchases.” .
It found that none of Apple’s terms of trade allow developers to freely steer their customers toward cheaper alternatives to the tech companies’ preferred apps.
For example, they were not allowed to provide pricing information within the app.
The commission also found that Apple made it difficult for customers to find pricing information by forcing them to “link” to a web page where the customer could find contract details.
Finally, he concluded that the fees charged by the App Store “go beyond what is strictly necessary.”
“If the commission’s preliminary views were ultimately upheld, none of Apple’s three sets of commercial terms would comply with Article 5(4) of the DMA, which requires gatekeepers to allow app developers to direct consumers to offers outside the guardians app stores. , free. The commission would then adopt a non-compliance decision within 12 months of the opening of the procedure on March 25, 2024,” the commission said in a statement.
In a statement, Apple said it had made a number of changes to comply with the DMA in recent months in response to feedback from developers and European Commission investigators.
“We are confident that our plan complies with the law and estimate that more than 99% of developers would pay the same or less in fees to Apple under the new commercial terms we created,” he said.
“All developers doing business in the EU on the App Store have the opportunity to use the capabilities we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive price. As we have always done, we will continue to listen and engage with the European Commission.”
