Apple Faces Breach of EU Digital Markets Act with App Store Violations

Money | June 24, 2024, 9:43 a.m.

The European Commission has announced that Apple's current App Store rules are in violation of the Digital Markets Act (DMA), potentially leading to fines of up to 10% of their global annual turnover. The Commission believes that third-party developers should be allowed to inform customers of alternative purchasing options without restrictions. Apple is under scrutiny for not allowing developers to advertise different prices or alternative distribution channels within their apps and imposing commission fees even for transactions handled on third-party websites. In response, Apple has made changes to comply with the DMA but is still under investigation for its Core Technology Fee and restriction on alternative app marketplaces. The EU is concerned that Apple's business model discourages developers and users from taking advantage of the opportunities the DMA provides. The final decision on Apple's compliance with the DMA is expected within a year.