European Union Targeting Apple for App Store Competition Violations

The European Commission opened the way to strong financial sanctions against Apple by determining that its App Store does not comply with the bloc’s competition rules. The Commission stated in a preliminary conclusion that the App Store rules violate the Digital Markets Law (LMD) by preventing app developers from freely directing consumers to alternative channels for offers and content. The LMD is one of the two regulatory pillars with which the EU seeks to regulate the operation of digital giants like Apple in the European space.

The European Commission had already opened an investigation on March 25 into the App Store in light of the competition rules determined by the LMD. The Commission informed Apple of its preliminary conclusion, and Apple now has the opportunity to respond in writing to the EU’s position. If the EU’s conclusion is confirmed, it will have to adopt 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 the year ending September 2023.

The LMD grants the European Commission the power to dismember companies that do not comply with the legislation, as a deterrent and last resort measure. Companies distributing their applications through the Apple App Store must be able to inform their customers about cheaper alternative purchasing possibilities. The Commission believes that this is not currently possible due to the commercial conditions imposed by Apple on application developers.

An Apple spokesperson mentioned that the company has made certain changes to adjust to the rules and will continue to work with the European Commission. The Commission and Apple are in a dispute over Apple’s compliance with the legislation to operate in the EU area. European Commissioner Thierry Breton emphasized the EU’s determination to use the tools of the LMD to resolve the issues surrounding digital giants like Apple, which have been ongoing for too long.