The European Comission launched a forceful accusation against Apple and claimed that the company violates the euro zone’s Digital Markets Act (DMA).
According to the statement issued by the executive arm of the European Union (EU), Apple would be hindering the ability of app developers to inform consumers about cheaper alternatives and direct them to other purchase options within your App Store.
This accusation is accompanied by a new investigation opened against the company that highlights a possible violation of the regulations that regulate fair competition in the digital market.
After hearing the news and before the market opened, The iPhone manufacturer’s shares fell more than 2% (-2.2%). Thus, during the last five days Apple papers accumulate a red of 1%. However, with the market underway, the trend reverses and they climb 1.2%.
What is the complaint against Apple like?
In detail, the EU highlights that the commercial conditions imposed by Apple on developers do not allow free orientation towards other distribution channels, severely limiting the ability to communicate and promote within applications. Likewise, it criticizes the “links” method as the only permitted way to redirect users away from the App Store, imposing restrictions that, according to Brussels, undermine free competition in the digital market.
In addition, Apple’s commission structure is questioned, under the argument that the fees charged could exceed what is necessary to compensate for the services provided to developers. This situation has led the EU to send Apple preliminary conclusions on the alleged violation of the DMA, marking the beginning of a process in which Apple will have the opportunity to present its defense and review the investigation documents.
If the preliminary conclusions are confirmed, none of Apple’s current business conditions would meet the standards set by the DMA. The EU plans to issue a final decision on the case within 12 months of the start of the procedure in March 2024.
This case is framed within a broader regulatory context where the DMA seeks to control digital “gatekeepers” such as Apple, Microsoft and other large technology companies.. These companies, identified by the EU for their dominant and long-standing position in the digital marketmust adhere to regulations designed to promote fair competition and protect consumers throughout the European Union.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
