EU Charges Apple With Antitrust Violations Over Digital Markets Act

European Union regulators have formally charged Apple with breaching the bloc's Digital Markets Act (DMA), which is a significant escalation in the EU's efforts to regulate Big Tech. 

The charges, announced by the European Commission on Monday, follow a thorough investigation initiated in March. This marks the first time the Commission has taken such action under the DMA, aimed at curbing the dominance of tech giants and fostering a fairer playing field for smaller competitors.

EU antitrust chief Margrethe Vestager outlined concerns regarding Apple's new business terms, alleging they restrict app developers' ability to communicate freely with users and directly conclude contracts. She emphasised that Apple could avoid a fine by modifying these terms to comply with EU regulations. Potential penalties could amount to up to 10 per cent of Apple's global annual turnover if the violations are confirmed.

Apple has responded, stating it has already adjusted its policies based on feedback from developers and the Commission. The tech giant maintains that its changes aim to ensure compliance with the law and benefit the vast majority of developers financially, asserting that more than 99 per cent of developers would either pay the same or less under the new terms.

In addition to the DMA charges, the European Commission has opened another investigation into Apple's new contractual requirements for third-party app developers and app stores. This investigation focuses on fees imposed by Apple, including those related to customer acquisition through the App Store, which the Commission believes exceed what is necessary.

The Commission's scrutiny extends to Apple's recent decision to delay the launch of AI-powered features in the EU, citing compliance issues with the DMA. Vestager expressed skepticism about Apple's reasoning, suggesting the delay could be construed as an attempt to exploit regulatory challenges for competitive advantage.