Tech conglomerate Apple has been found violating the antitrust laws in the European Union (EU) and is currently under investigation, according to a report by Reuters.
On Monday, the European Commission — the EU’s antitrust and tech regulator — announced that Apple engaged in anti-competitive practices in region by breaching the Digital Markets Act (DMA). Apple’s business practices hindered smaller businesses and made it difficult for users to find more affordable and alternative applications in Apple’s App Store. The Commission’s preliminary findings arrive in culmination of a probe launched in March this year.
The Commission has shared the findings with the company. Apple’s new terms on its App Store do not comply with the guidelines laid under the DMA, according to the Commission. Apple can appeal against the findings, as the Commission has until March next year to issue a final decision regarding the matter. Per the findings, Apple’s engagement rules violated the DMA as they hindered app developers from “freely steering consumers to alternative channels for offers and content”.
“For too long Apple has been squeezing out innovative companies — denying consumers new opportunities & choices,” said European commissioner Thierry Breton on X. “Today we are taking further steps to ensure AppStore and iOS comply with DMA.”
In addition, Apple is facing a separate probe into new fees for app developers, which the Commission says is “beyond what is strictly necessary”.
Apple has now become the first tech conglomerate to be charged under the DMA, which aims to regulate Big Tech companies and ensure fair competition across the tech sphere in the EU. The digital rules, which came into force fully in March 2024 following its roll-out in November 2023, were deployed against Google and Apple in the Commission’s initial round of investigations launched under them.
The DMA’s major objective is to prevent leading tech firms from dominating the digital market and pushing their products towards consumers against smaller competitors, according to the EU. The law focuses on recurring fees charged to app developers, tech discrimination, and restrictions and limitations imposed by major tech companies.
Under the DMA, tech companies could be fined up to 10 per cent of their total worldwide yearly turnover, and up to 20 per cent thereof for repeated violations. Periodic penalty payments amount to up to five per cent of average daily turnover.
