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Business News/ Technology / News/  Apple to face major charges over App Store monopoly: What we know so far

Apple to face major charges over App Store monopoly: What we know so far

The EU plans to charge Apple under the Digital Markets Act for blocking competition on its App Store, reported FT. Despite Apple's announced changes to allow alternative app stores, critics argue its fee structure remains unfair.

For representation purposes only. (AFP)Premium
For representation purposes only. (AFP)

Tech giant Apple is once again in the news for not complying with European Union regulations. According to a report from the Financial Times (FT), the EU is planning to charge the California-based company for blocking competition on its App Store platform. This is likely to be the first time the EU regulators could use the Digital Markets Act (DMA) against Apple. 

The report highlights that the executive arm of the EU strictly believes that Apple is not letting app developers allow users to offer outside the App Store without paying the respective fees. FT cited its three sources to confirm the news. 

For those who do not know, the DMA law allows gatekeepers (powerful tech companies) to allow more competition. Earlier this year in March, the EU began investigating Google and Apple under the same law. 

According to the report, the publication's sources said that charges against Apple are expected soon. However, it is noteworthy to note that these are based on preliminary findings. The regulatory body can reconsider the charges in case Apple still changes its practices, added the report.

Mint previously reported that Apple might face severe repercussions if its changes to the App Store do not comply with forthcoming European Union regulations, as warned by the bloc's industry chief.

To adhere to the EU's upcoming Digital Markets Act (DMA), Apple announced it would allow software developers to distribute their apps on Apple devices via alternative app stores. 

Starting from early March, developers will have the option to offer alternative app stores on iPhones and avoid using Apple's in-app payment system, which currently charges commissions of up to 30 percent, said the American tech giant.

Despite these changes, critics claimed that Apple's fee structure remained unfair and potentially in violation of the DMA. Addressing questions about Apple's plans, EU industry chief Thierry Breton told Reuters, "The DMA will open the gates of the internet to competition, ensuring that digital markets are fair and open."

Breton highlighted that change is already underway, stating, "From March 7, we will evaluate companies' proposals with feedback from third parties." He stressed that if the proposed solutions are inadequate, the EU is prepared to take strong action.



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Published: 14 Jun 2024, 10:56 PM IST
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