Apple has been found to be in violation of new EU laws designed to promote competition among smaller companies and help consumers find more affordable alternative apps in tech companies’ app stores.
The European Commission, acting as both the EU’s antitrust and technology regulator, has informed Apple of preliminary findings after launching an investigation in March.
The Commission’s preliminary findings, which Apple can appeal, state that Apple’s conduct rules do not comply with the Digital Markets Act (DMA) as they restrict app developers from freely directing consumers to other platforms for offers and content.
The Commission has also initiated new non-compliance proceedings against Apple over concerns that its new contract terms for third-party app developers do not meet DMA requirements.
This marks the third non-compliance investigation launched by the Commission since the DMA took effect last year.
As part of the investigation, the committee is examining the “core technology fee,” a charge that Apple imposes on developers each time their app is installed on a phone.
The allegations against Apple for violating EU law represent the first case against a tech company under the DMA, significant legislation introduced last August to ensure fair competition among six designated “very large online platforms,” including Google, Amazon, Meta, and ByteDance (TikTok).
The investigation comes after the committee’s initial inquiry into Apple’s treatment of mobile app suppliers three months ago.
Previous findings from an earlier investigation reiterated that Apple must allow developers to inform customers about alternative, cheaper purchasing methods, guide them to these options, and enable them to make purchases free of charge, as required by new digital laws.
The investigation found that Apple’s terms of business did not allow developers to direct customers to more affordable alternatives or provide pricing information within the app.
Moreover, Apple made it challenging for customers to access pricing information and required links to external web pages for contract details.
Ultimately, the Commission determined that the fees charged by the App Store were excessive and not strictly necessary.
The Commission stated that if Apple’s alleged violations are confirmed, all three of its terms and conditions would violate Article 5(4) of the DMA, mandating gatekeepers to allow developers to direct consumers to external offers free of charge. A non-compliance decision will be issued within 12 months of the proceedings’ start on March 25, 2024.
Apple has responded by making several changes in recent months to comply with the DMA based on feedback from developers and the European Commission.
The company believes its adjustments align with the law and estimates that under the new terms, over 99% of developers will pay the same or lower fees to Apple.
All EU-based developers on the App Store now have access to features like directing app users to the web for purchases at competitive prices, reflecting Apple’s commitment to address the European Commission’s concerns.
Source: www.theguardian.com
