Potential Hefty Fines Loom Under Digital Markets Act

 EU antitrust regulators have accused Apple of breaching tech rules through its App Store policies, which they claim restrict app developers from directing consumers to alternative offers. The European Commission has launched an investigation and could impose significant fines on Apple if found in violation of the Digital Markets Act (DMA). This marks the first charge under the DMA, a law aimed at curbing the dominance of Big Tech and promoting fair competition. The European Commission, acting as the EU’s antitrust and technology regulator, issued its preliminary findings to Apple after an investigation initiated in March.

EU antitrust chief Margrethe Vestager highlighted concerns with Apple's recent policy changes. "As they stand, we believe these new terms hinder app developers from freely communicating with their end users and forming contracts with them," Vestager stated at a conference. The Commission criticized Apple's practice of allowing app developers to steer customers only through 'link-outs,' where users are redirected to a web page to complete transactions. Additionally, the fees Apple charges for facilitating initial customer acquisition via the App Store were deemed excessive.

 Apple responded by noting several changes made to comply with the DMA following feedback from developers and the Commission. "We are confident our plan complies with the law and estimate that over 99% of developers would pay the same or less in fees under the new terms," Apple stated. The EU executive is also investigating Apple's new contractual requirements for third-party app developers and app stores, assessing their necessity and proportionality.

 Violations of the DMA can result in fines up to 10% of a company’s global annual revenue, posing a substantial financial risk for Apple. The Commission has until March next year to issue a final decision on the matter.