Apple violates Europe’s antitrust rules, part of new EU investigation

Apple’s App Store policies were found to be in violation of the European Union’s Digital Markets Act (DMA), which is designed to promote free competition. The conclusion was expressed by regulators in a preliminary decision on Monday. Additionally, the European Commission has launched a new investigation into Apple’s support for alternative iOS marketplaces in Europe, focusing on its controversial developer tax. Margrethe Vestager, head of competition policy in Europe, said: “Our preliminary position is that Apple does not fully allow redirection to alternative stores, which is critical to ensuring that app developers are less dependent on gatekeeper app stores and to so that consumers are aware of the best offers.”

Under the DMA, Apple and other so-called gatekeepers must allow app developers to direct consumers to offerings outside their app stores at no additional cost. Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers that had to comply with these rules by March 2024. Apple is the first company to be accused of violating the DMA rules, after the EU antitrust authority launched several investigations in the spring. Meta and Google are also currently under scrutiny for alleged non-compliance. Apple has until March 2025 to respond to the European Commission’s preliminary assessment before the final decision. In case of infringement, Apple could be fined up to 10% of its annual global revenue, equivalent to $38 billion according to last year’s data. The fine can increase up to 20% for repeated infringements.

Apple had previously been fined 1.84 billion euros (about $2 billion) by EU antitrust regulators over the App Store’s anti-redirection practices, in a case that preceded the DMA. This fine stemmed from a 2020 lawsuit following an antitrust complaint filed by Spotify. The European Commission has also initiated new proceedings regarding Apple’s support for alternative iOS app marketplaces. The investigation focuses on the controversial tax on core technologies, the complex process required to set up third-party marketplaces, and the eligibility requirements imposed on developers. Vestager added: “We have initiated proceedings against Apple in relation to the so-called basic technology tax and various rules to allow third-party app stores and sideloading. The developer community and consumers are eager to offer alternatives to the App Store. We will investigate for ensure that Apple does not impede these efforts.”