The European Comission On Monday, he opened the way to strong financial sanctions against Apple by determining, preliminarily, that its App Store does not comply with the bloc’s competition rules.
“The App Store rules violate the Digital Markets Law (LMD), as they prevent app developers from freely directing consumers to alternative channels for offers and content“, the Commission stated in a “preliminary conclusion.”
The Digital Markets Law is one of the two regulatory pillars (along with the Digital Services Law) with which the EU seeks to regulate the operation of digital giants such as Apple in the European space.
The European Commission, the executive arm of the EU, had already opened an investigation on March 25 into the App Store, in light of the competition rules determined by the LMD.
In a statement, the Commission said it informed Apple of its preliminary conclusion, which will now be able to exercise its right of defense by responding in writing to the EU’s position.
If the EU conclusion is confirmed, it will have to adopt a decision by the end of March 2025, when it will be able to fine Apple up to 10% of its global turnover.
Apple’s total turnover in the year ending September 2023 amounted to 383 billion euros (about 358 billion dollars).
Beyond the fines, the LMD grants the European Commission the power to dismember companies that do not comply with the legislation, in a weapon seen as a deterrent and usable only as a last resort.
Permanent tensions
Current regulations determine that companies that distribute their applications through the Apple App Store “They must be able, free of charge, to inform their customers about cheaper alternative purchasing possibilities”explained the Commission.
In the Commission’s opinion, this is not currently the case due to the commercial conditions imposed by Apple on application developers.
This Monday, an Apple spokesperson assured that the company adopted “a certain number of changes” to adjust to the rules and that it will continue to “listen and act together with the European Commission.”
The Commission and Apple are locked in a bitter dispute over the requirement for the firm to comply with the legislation if it wants to operate in the EU area.
The EU has already fined Apple $1.8 billion following an investigation launched following complaints from the online music platform Spotify.
Apple, however, has filed an appeal before European justice to have that sanction annulled.
European Commissioner Thierry Breton, who manages enforcement of digital market laws, said that in the EU “we are determined to use the clear and effective tools of the LMD to quickly put an end to a saga that has already lasted too many years.”
“For too long, the tech giant [Apple] “It has been displacing innovative companies and depriving consumers of new possibilities,” he said.
Apple is also under investigation into whether it allows users to easily uninstall apps on its iOS operating system and the layout of the web browser’s choice screen.
The LMD requires companies to offer choice screens for web browsers and search engines to give users more options.