The European Commission has initiated steps to potentially impose substantial financial penalties on Apple, citing violations of EU competition rules by the App Store.
The Commission in Brussels declared that the App Store’s regulations breach the Digital Markets Act by preventing app developers from directing consumers to alternative distribution channels for offers and content.
This preliminary opinion is the first under the new competition rules adopted by the Digital Markets Act, effective since March 7, following an investigation initiated on March 25.
Apple now has the opportunity to defend itself by reviewing the case file and responding in writing to the initial findings.
If these conclusions are confirmed, the European Commission will issue a final decision by the end of March 2025, declaring Apple non-compliant.
Consequently, Apple could face a fine of up to 10% of its global revenue, potentially rising to 20% for repeated violations. Apple reported revenues of $383 billion for the fiscal year 2023, which ended in September.
Under the Digital Markets Act, companies distributing apps through Apple’s App Store must inform customers about less costly alternative purchasing options and direct them to these offers, allowing transactions outside of Apple’s ecosystem.
The Commission asserts that this is currently not happening due to Apple’s commercial terms imposed on app developers.
This dispute between Apple and the European Commission, which oversees competition compliance in the EU, has been ongoing for a significant period. For similar reasons, the Commission imposed a fine of 1.8 billion euros on Apple in early March, concluding an investigation that began in June 2020 following a complaint by the music streaming platform Spotify.
Apple, insisting it has committed no wrongdoing, has appealed the decision to the European Court to overturn the penalty.
Thierry Breton, the European Commissioner for the Internal Market, emphasized the EU’s determination to use all available tools under the Digital Markets Act to swiftly address this prolonged issue.
