Antitrust investigators in the European Union accused Apple (AAPL.O) of breaking tech regulations on Monday. The claim may result in a large punishment for the iPhone manufacturer, which is already under investigation for new levies imposed on app developers.
After an inquiry that began in March, the European Commission—which also serves as the EU’s antitrust and technology regulator—announced that it had forwarded Apple its preliminary conclusions.
The Commission has filed its first accusation against Apple under the historic Digital Markets Act, which aims to limit the influence of Big Tech and provide equal opportunities for smaller competitors. It has until March of the following year to make a determination.
A corporation that violates DMAs may be fined up to 10% of its yearly worldwide revenue.
Apple’s new terms have drawn criticism from EU antitrust watchdog Margrethe Vestager, who said that they did not fully comply with the DMA. If Apple can change its business conditions to solve the issues, it can avoid being fined.
“As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” she stated at the conference.
She stated that she would not be dictating to Apple how to comply with the DMA; rather, she would leave that decision up to the firm.
Apple stated that it has changed a lot over the last several months to adhere to the DMA in response to input from the Commission and app developers.
“As we have done routinely, we will continue to listen and engage with the European Commission,” it stated in a message.
According to the Commission, Apple only permits steering through “link-outs,” or app developers’ ability to put a link in their app that takes users to a web page where they may complete a contract. This is because of the majority of the commercial conditions.
It also criticized Apple for charging fees that beyond what was absolutely required for such compensation in order to facilitate developers’ initial acquisition of a new client through the App Store.
As a result of concerns from “Fortnite” creator Epic Games and others, Apple implemented additional taxes in the EU in March. These costs include the core technology fee, which is charged to big app developers even if they do not utilize any of the company’s payment systems.
