Apple Faces First Charges Under Latest E.U. Competition Legislation

Money | June 24, 2024, 3:43 a.m.

Apple is under fire from European Union regulators for imposing unfair restrictions on developers for its App Store, violating a new law aimed at promoting competition in the tech industry. This marks the first time a company has been charged under the Digital Markets Act, giving E.U. regulators broad powers to enforce changes on major "online gatekeepers." Regulators accuse Apple of using its size and resources to stifle competition, particularly by restricting how developers of games, music services, and other applications communicate with customers about sales and content outside of the App Store. The company faces a penalty of up to 10 percent of global revenue, with the possibility of a 20 percent fine for repeat violations. With Apple reporting $383 billion in revenue last year, the stakes are high in this escalating battle between the tech giant and E.U. authorities.