The European Commission has opened the door to imposing strong financial sanctions against Apple after determining that its App Store does not comply with the bloc’s competition rules. The Commission stated in a preliminary conclusion that the App Store rules violate the Digital Markets Law (LMD) by preventing app developers from freely directing consumers to alternative channels for offers and content.
The investigation into the App Store began on March 25, and Apple was informed of the preliminary conclusion. The company will now have an opportunity to respond to the EU’s position in writing. If the EU confirms its findings, a decision will be adopted by the end of March 2025, with the possibility of fining Apple up to 10% of its global turnover, which amounted to 383 billion euros in the year ending September 2023.
The LMD grants the European Commission the power to dismember companies that do not comply with the legislation as a last resort. The Commission explained that companies distributing their applications through the Apple App Store must inform their customers about cheaper alternative purchasing possibilities free of charge. However, this is not currently possible due to commercial conditions imposed by Apple on application developers.
In response to these findings, an Apple spokesperson stated that they had made some changes to adjust to the rules and would continue working with them. The EU and Apple are engaged in a dispute over whether or not it is necessary for Apple to comply with this legislation in order to operate within Europe’s boundaries. This is not a new issue; back in 2017, Apple was fined $1.8 billion by the EU following an investigation prompted by complaints from online music platform Spotify. In response, Apple filed an appeal against this sanction before Europe’s justice system.
Overall, it seems that tensions are continuing between these two major players in tech industry regulation and enforcement respectively
