Apple Faces EU Scrutiny Over App Store Practices

The European Union’s antitrust authorities have identified several significant non-compliance issues with Apple’s business practices under the Digital Markets Act (DMA), according to Competition Commissioner Margrethe Vestager. The investigation, which began in March, focuses on Apple’s App Store practices and whether the company has allowed third-party developers to direct customers to cheaper products outside their app stores. Vestager emphasized the seriousness of the findings and the EU’s commitment to enforcing compliance with the same rigor as with any other business.

Vestager expressed surprise at the extent of the suspicions regarding Apple’s compliance, highlighting the importance of the App Store and its payment mechanisms for many businesses. Although specific details of the investigation have not been disclosed, Vestager indicated that the results would be revealed soon. The Financial Times reported that the European Commission is preparing formal charges against Apple for alleged anticompetitive behavior in its App Store, marking the first time EU regulators have pursued a Big Tech firm under the DMA.

Apple could potentially avoid charges by making concessions to appease regulators. However, if found in violation of the law, the company could face fines of up to 5% of its average daily worldwide turnover, which amounts to approximately €925 million per day. This investigation is part of a broader effort by the European Commission to scrutinize the practices of major tech firms, including Google and Meta, to ensure compliance with the DMA.

In a related development, Apple recently avoided a significant fine in a separate EU antitrust case concerning its contactless “Apple Pay” service by agreeing to make concessions. This underscores the EU’s ongoing efforts to regulate the digital market and ensure fair competition among tech giants.