Apple breaches DMA with App Store rules, European Commission says

The tech giant also faces a third non-compliance probe over its App Store.

Transcript

00:00Apple is violating EU rules on digital platforms, according to preliminary findings of an investigation

00:07by the European Commission into the company's App Store running in smartphones.

00:12Brussels says that Apple hinders competition by allowing app developers to sell their products

00:16only through link-outs and asking them for fees that go, quote, beyond what is strictly

00:22necessary.

00:23These practices also damage consumers, says the leading European consumer association.

00:29Consumers should have the ability to use app services like music streaming or dating apps

00:35at the best prices and know where to find these.

00:39At the moment, Apple prevents app developers from freely steering consumers to alternative

00:45channels to find such offers.

00:49Apple now has the opportunity to analyse the findings and present its response to the Commission.

00:54The non-compliance procedure as a whole has to be completed by March 2025.

01:00If our preliminary findings and concerns are confirmed, then we could go to fines indeed.

01:08Concretely, what are these fines?

01:10It could be 10% of Apple's global annual turnover or it could be daily periodic penalty payments

01:17going to up to 5% of the company's daily worldwide annual turnover.

01:25The European Commission has also opened another investigation into Apple for contractual requirements

01:29applied to third-party app developers, making it the third one against the big tech company.