Brief news
The European Commission has accused Apple of violating the Digital Markets Act (DMA) by not allowing app developers to direct users to alternative channels for offers and content. The Commission began investigating Apple, Alphabet, and Meta in March as part of a major new law called the DMA. The DMA aims to limit the power of big tech companies and prohibits businesses from telling customers about cheaper versions of their goods or subscriptions that aren’t in an app store. Apple’s App Store rules prevent app developers from freely steering consumers to alternative channels for offers and content. The Commission claims that Apple only allows app developers to use a method that allows users to access a website where they can buy something, like a subscription. The Commission also claims that Apple’s fees for getting new customers through the App Store go beyond what is strictly necessary. If found to be breaking the DMA, Apple could be fined up to 10% of its net annual sales worldwide. Apple has made significant changes to its App Store in the EU due to the DMA, but the Commission is also concerned about Apple’s new habits.
Illustrated news
EU officials said on Monday that
EU officials said on Monday that Apple is breaking strict new tech rules because it doesn’t let people who use its App Store be directed to other apps.
The EU’s executive arm, the European Commission, also said it had started a new investigation into Apple to look into new terms of contracts with developers.
The EU began looking into Apple, Alphabet, and Meta in March. This was done as part of a major new law called the Digital Markets Act (DMA), which is meant to limit the power of big tech companies. Some rules that are supposed to stop people from turning were a big part of the investigation. The DMA says that tech companies can’t stop businesses from telling their customers about cheaper versions of their goods or subscriptions that aren’t in an app store.
In their preliminary findings released on Monday, regulators said Apple had broken the DMA because its App Store rules “prevent app developers from freely steering consumers to alternative channels for offers and content.”
We asked Apple for a comment, and they replied.
The Commission says that Apple only lets app developers use a method that lets them give users a link that takes them to a website where they can buy something, like a subscription. “Apple has put several restrictions on this process that make it impossible for app developers to communicate, promote offers, and sign contracts through the distribution channel of their choice,” the Commission said.
Authorities also said that the fees Apple charges developers to get new customers through the App Store “go beyond what is strictly necessary.” It wasn’t clear from the Commission what a “strictly necessary” fee is.
If Apple is found to be breaking the DMA, it could be fined up to 10% of its net annual sales around the world.
This year, the EU has been after the U.S. computer giant. Apple was given an antitrust fine of 1.8 billion euros ($1.93 billion) in March for abusing its market dominance to sell too many music streaming apps. The rules for turning were also looked into in that case.
EU starts a new DMA investigation
Because of the DMA, Apple made some big changes to its App Store in the EU this year. The Cupertino giant now lets people get apps for its devices from both websites and third-party app shops.
However, the Commission was also worried about some of Apple’s new habits.
An extra “core technology fee” of 50 cents ($0.54) is still charged by Apple for apps downloaded from places other than the App Store. The Commission said it is checking to see if this is in line with the DMA.
Regulators are also checking to see if the steps Apple makes users take to get other app shops or apps are legal in the bloc.
“Eligibility requirements related to the ability to offer alternative app stores or directly distribute apps from the web on iPhones” will also be looked at by the Commission to see if they are in line with the tech law.
Source : CNBC News
