EU accuses Apple of flouting digital competition rules at its Apple Store

The European Commission announced this Monday that it has launched an in-depth investigation against the company. Manzana having made a preliminary analysis that the digital store of the American technology giant violates the Digital Markets Act European Union.

“The App Store rules violate the Digital Markets Act (DML) because they prevent app developers from freely directing consumers to alternative channels for offerings and content,” the Commission said in its “preliminary opinion.”

In parallel, Brussels also opened “a new non-compliance procedure against Apple – its third overall – as it suspects that “its new contractual requirements for third-party app developers and app stores” also violate community rules, the European Commission said. . this is a statement.

In case of violation, the Commission may impose fines up to 10% of turnover total worldwide company and up to 20% in case of repetition.

“Without prejudice to Apple’s right to protection, we are committed to using the clear and effective tools of the Digital Markets Act to finally open up real opportunities for innovators and consumers,” the Internal Market Commissioner said. Thierry Breton.

The first investigation, extended, continues the preliminary case initiated by the executive branch on March 25 and concerns rules of the Apple digital store “App Store”.

Brussels believes the company’s rules “prevent app developers from freely directing consumers to alternative channels for offers and content.”

European law stipulates that those who distribute their apps through the “App Store” must be able to inform their customers, free of charge, of “alternative cheaper purchasing options, direct them to these offers and allow them to make purchases.”

But the Commission understands that none of the three sets of commercial terms governing the relationship between Apple and developers allows for this.

In “most commercial terms” for developers, Apple only allows developers to redirect clients through a link to a web page (the “link”) to enter into a contract, in a process that is subject to several restrictions “imposed by Apple.” explains the commission.

These restrictions prevent developers from “communicating, promoting proposals, and entering into contracts through their chosen distribution channel.”

Apple also charges them commission for each purchase of digital goods or services which the user completes within seven days of using a “link” from the app, a practice that the community leader said goes “beyond what is strictly necessary” to earn a reward for which the digital giant does have the right to charge. assistance in attracting new clients.

Now the company can study the documents and exercise the right to defense by sending a written response to Brussels.

Based on these responses, the Commission could make a “decision of non-compliance within 12 months of opening of procedures on March 25, 2024″indicated the institution.

In addition, Brussels has launched a new investigation into Apple for failing to comply with Community digital rules in relation to the contractual terms it offers to developers, and in particular regarding providing alternative app stores or the possibility of offering the application through an alternative distribution channel.

In particular, the Commission is interested in Apple’s “core technology fee”a system whereby developers of third-party app stores and third-party apps must pay a fee of €0.50 per installed app and investigate the structure of fees charged.

Brussels will also review Apple’s process for downloading and installing alternative app stores or apps on its iPhone phones.

At the same time, the Executive Director will continue to develop a preliminary investigation to determine whether the controls and verification measures Apple has established to review alternative apps and app stores subject to side-loading are consistent with Digital Markets Act that giants like Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta (Facebook) and Microsoft must comply.

Brussels is also holding preliminary investigation of Alphabet’s activities in Google Play and Meta, as well as collection of information about Amazon..

In case of violation, in addition to the above-mentioned fines, Brussels will also may force the firm in question to “sell the business or parts thereof.”or prohibit the caregiver from purchasing additional services associated with persistent noncompliance.”