Information technology EU Commission launches investigation against Apple

The EU Commission has launched an investigation against Apple for possible violations of rules for online platforms. It is investigating whether Apple is fulfilling its obligation to direct users to software offers outside of its own App Store free of charge.

"The developer community and consumers are very interested in offering alternatives to the App Store. We will investigate the matter to ensure that Apple does not undermine these efforts," said EU Competition Commissioner Margrethe Vestager on Monday in Brussels.

Since the beginning of March, companies have had to comply with the Digital Markets Act (DMA). It is intended to ensure more competition for digital services and better opportunities for new rivals. The basic assumption is that some large platform operators have become so powerful that they could cement their market position.

The DMA is intended to break this up with rules for the so-called gatekeepers. These include the US heavyweights Apple, Amazon, Microsoft, Alphabet and Meta.

Fee with a question mark

The EU Commission also has doubts as to whether Apple's so-called core technology fee is proportionate. Among other things, the company introduced this annual fee in March with new terms and conditions. It amounts to 50 cents for each initial installation of an app after exceeding the threshold of one million downloads in a twelve-month period.

At the same time, developers can also remain in the previous model, in which they continue to distribute their applications only via Apple's App Store. As before, they then pay a levy of 15 or 30 percent of digital revenues within the app.

Apple defends itself

Apple rejects accusations Apple refuted the Commission's accusations, saying that it had made a number of changes in recent months to comply with the DMA. "We are confident that our plan complies with the law." It is estimated that more than 99 percent of developers will pay the same or fewer fees to Apple with the new terms and conditions.

All developers operating in the App Store in the EU will be able to take advantage of the features introduced by Apple, including the ability to redirect app users to the internet to complete purchases "on very competitive terms". "We will continue to listen to and work with the European Commission."

Should the Commission come to the final conclusion that Apple is in breach of the DMA, it could face fines of up to 10 percent of annual turnover - and up to 20 percent in the event of repeated breaches. As a final option, the companies could also be broken up. Ultimately, courts could decide on possible penalties.

SDA