European Union (EU) said on Monday that Apple (NASDAQ:AAPL) is violating new comprehensive tech regulations by not allowing App Store customers to be directed to alternative options.
The European Commission, the executive arm of the EU, also revealed it has initiated a new investigation into Apple concerning new contractual terms with developers.
In March, the EU began investigating Apple, Alphabet (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) under the Digital Markets Act (DMA), a landmark law designed to curb the dominance of Big Tech firms. Anti-steering rules, which prevent companies from blocking businesses from informing users about cheaper alternatives or external subscriptions, were a key focus of this investigation.
On Monday, regulators said in their preliminary findings that Apple breached the DMA because its App Store rules “prevent app developers from freely steering consumers to alternative channels for offers and content.”
According to the Commission, Apple permits steering only through a system where developers can provide a link to a webpage where users can purchase content, such as subscriptions. However, this system is “subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers, and concluding contracts through the distribution channel of their choice,” the Commission noted.
Regulators also criticized the fees Apple charges developers for acquiring new customers via the App Store, noting that these fees “go beyond what is strictly necessary.” The Commission did not specify what it considers a “strictly necessary” fee.
