Apple in breach of law on App Store, says EU

Apple is facing accusations from the European Union (EU) for allegedly breaching new laws aimed at regulating big tech companies. The European Commission, which oversees competition within the EU, has claimed that Apple's App Store is unfairly squeezing out rival marketplaces. This marks the first instance of a company being found in violation of the Digital Markets Act (DMA). Should Apple fail to comply with these regulations, it could face a fine of up to 10% of its global revenue. Apple has expressed confidence that its current plan adheres to the law. The tech giant has been given the opportunity to review the preliminary findings of the investigation and can avoid a substantial fine if it proposes a satisfactory solution to the EU. The European Commission asserts that developers should have the freedom to inform customers about cheaper app stores beyond Apple's. Currently, Apple charges developers an average commission of 30% on its App Store. The EU had previously instructed Apple to address this issue in March. 'We have reason to believe that the App Store rules, which prevent app developers from freely communicating with their users, are in breach of the DMA,' stated EU Commissioner Thierry Breton. Additionally, the Commission alleges that Apple's fees exceed what is strictly necessary. In response, Apple has claimed that it has implemented changes in recent months to ensure compliance with the DMA. 'We estimate that more than 99% of developers would pay the same or less in fees to Apple under the new business terms we have established,' the company said in a statement. 'All developers conducting business in the EU on the App Store now have the opportunity to utilize the new capabilities we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive rate. ' Apple also argues that users benefit from robust security measures by using the official App Store. The Commission has indicated its willingness to discuss security concerns with Apple. Separately, the European Commission has launched another investigation into Apple concerning new contractual terms for developers. This investigation focuses on three primary areas: a fee of €0. 50 that Apple charges developers for every app downloaded outside of its App Store, the number of steps required for users to download apps from alternative stores, and whether Apple's eligibility criteria for alternative app store developers violate the DMA. Apple has stated that it has revised its eligibility criteria to facilitate the establishment of app stores by developers. The company also mentioned that it has removed the €0. 50 fee for apps that do not generate revenue, such as those created by students.