EU says App Store breaches bloc’s digital competition rules

The European Commission informed Apple in a “preliminary view” that the App Store rules prevent app developers from freely steering consumers to alternative channels for offers and content

Apple risks billions of euros in fines after the EU on Monday found the company’s App Store to be infringing the bloc’s digital competition rules.

The European Commission informed Apple in a “preliminary view” that the App Store rules prevent app developers from freely steering consumers to alternative channels for offers and content.

It opens a new front in the increasingly bitter fight between the iPhone maker and Brussels over the EU’s new Digital Markets Act.

On Friday, Apple said it would delay rolling out recently announced AI features in Europe because of “regulatory uncertainties” linked to the Digital Markets Act.

The sweeping law seeks to rein in the world’s largest tech companies, including Apple, by forcing them to open up to competition in the bloc.

But for Apple, the new rules are a significant challenge to its walled garden and it has openly accused the Digital Markets Act of creating greater privacy and security risks for users.

This is the first time the commission has levelled a formal accusation against a tech company under the new rules, after opening the first DMA probes into Apple, Google and Meta in March.

Apple said Monday that it has made “a number of changes” to comply with the rules in response to feedback from developers and the EU regulator over the past months, and would “continue to listen and engage with the European Commission.”

Apple can now access the commission’s investigation file and reply to the findings.

If the commission’s view is confirmed, it would adopt a “non-compliance decision” by late March 2025 – opening the way to fines.

Under the new law, the commission has the power to impose fines of up to 10% of a firm’s total global turnover. This can rise to up to 20% for repeat offenders.

Apple’s total revenue in the year to September 2023 sat at $383 billion (€358 billion).

The European Union also has the right to break up firms, but only as a last resort.