According to Brussels, Apple is violating a new tech law and is facing a fine of billions

This article was last updated on June 24, 2024

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According to Brussels, Apple is violating a new tech law and is facing a fine of billions

Tech giant Apple is working against app developers who want to communicate with their customers, thereby violating the Digital Markets Act. That is the preliminary conclusion of the European Commission, which started an investigation into this earlier this year. The preliminary judgment may be a prelude to a fine worth billions.

Vice-President of the European Commission Margrethe Vestager (Competition) calls the provisional conclusion important. Ultimately, she believes, app builders will become less dependent on Apple’s app store and consumers will soon be better informed “of better offers”.

Apple says it has “implemented a series of changes” to comply with the law. “We are confident that our plan complies with the law.” It will become clear within a year whether a fine will actually follow.

This step further escalates the battle between Apple and Brussels. The company announced on Friday that it would not be bringing new AI functions to the EU for the time being due to the same law.

Take out subscription via website

The issue concerns developers who offer apps through Apple’s download store, the App Store. According to European rules, they must be able to inform customers that they can not only take out a subscription in the app, but also via the website, for example.

According to the EU, agreements that Apple made with developers about this do not provide the required options. For example, app makers are not permitted to show or communicate about an alternative offer within the app. It is possible to link within the app to an offer outside the app, but the Commission also sees unjustified restrictions there.

In addition, Brussels is critical of the compensation that Apple charges developers when a customer reaches the developer’s website via a link in the app and takes out a subscription there.

The Commission is also launching a third investigation into Apple. This revolves around the question of the conditions that Apple imposes on developers who, for example, want to offer their app through an alternative download store.

It is being investigated whether these conditions are in line with the Digital Markets Act. This includes the costs that Apple charges and the steps that consumers must go through to install an alternative app store.

Apple is not the only company under investigation under the new tech law. Also Google and Meta are under the magnifying glass. It is clear that the EU wants to send the signal that it means business.

Game between big tech and Brussels

At the same time, a game is becoming increasingly clear between American tech giants on the one hand and the Commission on the other. This first became clear last year when Meta, the parent company of Facebook and Instagram, decided to wait with the rollout of X alternative Threads in Europe due to the same law.

Apple is now going a big step further the most noteworthy new features of its new operating systems, with a leading role for AI, not any time soon to the European market. The company speaks of “legislative uncertainty”. Apple also points out requirements that would pose a risk to the privacy and security of users. The company has not shared any further details about this.

It is impossible to say how big the problem actually is for Apple. In any case, it shows that consumers can miss out on new, innovative functions due to stricter tech regulations. That image could serve the tech giant well in further discussions with the Commission.