The European Commission has opened the door to imposing strong financial sanctions against Apple by declaring that its App Store does not comply with the bloc’s competition rules. In a preliminary conclusion, the Commission stated that the App Store rules violate the Digital Markets Law (LMD) by preventing app developers from directing consumers to alternative channels for offers and content.
The EU had already launched an investigation into Apple’s App Store in March 25 due to concerns about competition rules as set out in LMD. Apple has been informed of the preliminary conclusion and now has an opportunity to respond in writing to the EU’s position. If the Commission’s conclusion is confirmed, it will have to make a decision by the end of March 2025 and may impose a fine of up to 10% of Apple’s global turnover, which totaled €383 billion euros in 2022-2023.
The LMD empowers the European Commission to dismantle companies that do not comply with its regulations, as a last resort measure. Companies distributing their apps through Apple’s App Store must inform customers about cheaper alternatives for purchasing goods and services. However, according to the Commission, this is currently impossible due to commercial conditions imposed by Apple on developers.
An Apple spokesperson said that the company has made changes in order to comply with EU regulations and will continue working with them. However, there is a dispute between Apple and EU regulators over whether or not these changes are sufficient for compliance with EU laws. Thierry Breton, European Commissioner for Internal Market, emphasized that “the EU will use all available tools under Digital Markets Law to ensure fair competition in digital markets.”