Apple accused of violating E.U.’s new tech competition rules

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The European Union’s competition watchdog said Apple isn’t fully allowing app developers to steer consumers elsewhere.

European Commissioner Margrethe Vestager speaks during a news conference regarding the Digital Markets Act at European Union headquarters in Brussels on March 25, 2024. In a set of preliminary findings, the E.U. found the company to be the first in breach of the Digital Markets Act, a sweeping set of rules designed to prevent Big Tech from stifling. It holds that app developers must be allowed to inform users of cheaper alternatives outside the app store — a practice known as “steering.

Steering is key to ensuring app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers,” wrote Margrethe Vestager, E.U. executive vice president in charge of competition policy. Regulators took issue with several policies that Apple applies to app developers, such as preventing them from providing pricing information within its app or promoting certain offers. They also flagged rules applied to linking customers to other apps, as well as certain fees that Apple charges.Summary is AI-generated, newsroom-reviewed.

The E.U. also said it opened a new probe into Apple’s contractual terms with developers. Specifically, it is looking into a fee of half a euro , which developers must pay for each installed app, and an Apple membership program for developers. It is also probing the “multistep user journey” required to download and install an alternative app store on iPhones.

 

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