The European Commission said Apple’s App Store policies hamper competition and break the bloc’s strict digital rules, potentially exposing the company to a fine worth tens of billions of dollars if the preliminary charges stand by the time a final decision is made in March.
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Apple’s App Store rules illegally stifle competition, the European Commission said on Monday, escalating a years-long spat between the U.S. giant and the powerful trading bloc after the company vowed to withhold its anticipated Apple Intelligence AI products over concerns antitrust regulation would force compromises on privacy and security features.Key Facts
The European Commission, the European Union’s executive arm and also its tech and competition watchdog, said Apple’s App Store policies appear to breach the bloc’s Digital Markets Act rules designed to foster competition in the tech sector and protect smaller companies from big platforms.
The preliminary findings follow an investigation the bloc launched in March, and claim the App Store rules don’t allow developers to to freely direct customers to alternative payment methods or content outside of Apple’s ecosystem.
The Commission also said the fees Apple charges developers for helping them acquire new customers “go beyond what is strictly necessary for such remuneration.”
The findings have been sent to Apple, and the company has a year to defend itself before a final ruling is issued by March 25, 2025, the Commission said.
“The developers’ community and consumers are eager to offer alternatives to the App Store,” said EU antitrust chief Margrethe Vestager in a statement, adding that the bloc will work “to ensure Apple does not undermine these efforts.
