Apple’s software store policies that forbid software creators from sending customers to other offers are allegedly in violation of EU tech regulations, according to claims by EU antitrust authorities.
EU antitrust investigators claimed on Monday that Apple’s software store policies violate EU tech regulations because they prohibit software developers from directing users to other offers. This accusation could result in a significant fine for the iPhone manufacturer. After an inquiry that began in March, the European Commission—which also serves as the antitrust and technology regulator for the European Union—announced that it had forwarded Apple its preliminary conclusions.
The Commission has filed its first accusation against Apple under the historic Digital Markets Act, which aims to limit the influence of big tech and provide equal opportunities for smaller competitors. It has until March of the following year to make a determination. Apple’s new terms have raised concerns, according to EU antitrust chief Margrethe Vestager. “As they stand, we think that these new terms do not allow app developers to communicate freely with their end users and to conclude contracts with them,” she stated at the conference.
According to the Commission, Apple only permits steering through “link-outs,” or app developers’ ability to put a link in their app that takes users to a web page where they can complete a contract. This is because of the majority of the commercial conditions. It also criticized Apple for charging fees that were beyond what was absolutely required for such compensation in order to facilitate developers’ initial acquisition of a new client through the App Store.
Following comments from the Commission and developers, Apple announced a number of adjustments to comply with the DMA over the last few months. “We are confident our plan complies with the law, and we estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the business stated in a message. The EU executive announced that it will also launch an inquiry into the iPhone manufacturer on its new contractual obligations for independent app shops and developers, as well as the question of whether these are appropriate and essential.
Companies that violate DMAs may be fined up to 10% of their yearly global revenue.
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
