The European Commission is getting ready to accuse Apple of impeding competition, on its mobile app store a move seen as groundbreaking. This is the instance where EU regulators are using the introduced Digital Markets Act (DMA) to target a major tech player. The DMA aims to compel gatekeepers” to foster competition within the EU with Apples practices now under scrutiny.
Sources familiar with the probe indicate that the European Commission has found that Apple is failing to fulfill its obligation to allow app developers to direct users to alternative offers, outside the App Store without charging fees. The charges, anticipated to be made public in the weeks stem from an initial discovery giving Apple a chance to address its practices and potentially influencing a reconsideration of the final ruling.
Potential Penalties and Global Scrutiny
If Apple is found to violate the DMA it could face penalties, including fines of, up to 5% of its average worldwide turnover, which currently exceeds $1 billion. The EUs actions are in line with the growing scrutiny on tech companies and their dominance in the market. Similarly the United States has initiated a case against Apple for leveraging its influence in the smartphone industry to stifle competitors and restrict consumer options.
Apart from investigating Apples steering practices the EU is also looking into adjustments made by the company to its developer fee structure. Some developers are concerned that these new fees, such as a “core technology fee” and an additional 3% charge for using Apples payment system could lead to increased costs for them. The EU might soon announce charges related to these developer fees well showcasing the thoroughness of the investigation, under the DMA.