Apple Is The First Company Accused Of Flouting EU's Landmark DMA: Report

EU regulators have accused Apple of breaching new EU legislation designed to foster competition in the tech sector by imposing unjust restrictions on developers of apps for its App Store.

Apple reported $383 billion in revenue last year.

Source : Keming Tan/Unsplash

Apple is the first compay that faces charges under the European Eunion's (EU) Digital Markets Act (DMA) and it is accused of flouting the 2022 law aimed at empowering European regulators to mandate significant changes in the operations of major "online gatekeepers." Brussels regulators have accused Apple of breaching new EU legislation designed to foster competition in the tech sector by imposing unjust restrictions on developers of apps for its App Store, says a report by The New York Times (NYT).

According to EU regulators, Apple is accused of unfairly limiting app developers from informing users about cheaper purchasing alternatives outside of the App Store. This practice, referred to as "steering," is explicitly prohibited under the DMA, which seeks to foster competition within the technology sector.

What Is Apple's Breach Of EU Competition Rules

Thierry Breton, Commissioner for Internal Market, remarked, "Apple's new motto could be 'act differently.' Today, we are intensifying efforts to ensure Apple adheres to the DMA regulations."

After initiating an investigation in March, EU regulators said the iPhone maker was putting unlawful restrictions on companies that make games, music services and other applications, the NYT report added.

According to EU's DMA, Apple is prohibited from restricting how companies interact with customers regarding sales, offers and content available outside the App Store. Violations could result in penalties of up to 10 per cent of global revenue, with potential increases to 20 per cent for repeated offenses, as stated by regulators.

Notably, Apple reported $383 billion in revenue last year.

The charges indicate that the European Union, recognised for its proactive stance in regulating the tech sector, intends to ramp up its enforcement efforts.

Tech giants Amazon, Google and facebook parent Meta are also under scrutiny for potential violations of the new competition regulations, while TikTok and Elon Musk-backed X are being investigated under separate legislation aimed at compelling Internet firms to enhance their oversight of illicit content on their platforms.