EU Targets Apple Over App Store Competition Practices

Brussels, Belgium is bringing charges against Apple for allegedly suppressing competition on its mobile app store by implementing The EU's new Digital Markets Act (DMA). The European Commission has concluded that Apple is not living up to its promises to allow software developers to connect clients to offers outside of the software Store without charging for such recommendations. These charges, designed to force powerful “online gatekeepers” to open their businesses to competition, could lead to daily penalties of up to 5 percent of Apple’s average daily worldwide turnover.

Despite announcing changes to the App Store, and Safari browser in January 2024, Apple’s efforts to placate regulators have not fully satisfied the EU's requirements. These changes included reducing the App Store fee from 30 percent to 17 percent and allowing access to rival app stores. New fees introduced by Apple, such as a "core technology fee" and an additional charge for using its payment processor, have raised concerns among developers about potentially higher costs. Apple maintains confidence that its plan complies with the DMA and continues to engage with the European Commission during its investigations.

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