Apple Becomes First Target of 'EU Digital Law'... "App Store Violates Law" (Comprehensive)

Apple "Confident in Compliance... Cooperating with Regulators"
Facing Broad Pressure over Antitrust Allegations in US and Europe

Apple has become the first target of the European Union's (EU) 'Big Tech Fairness Act,' the Digital Markets Act (DMA), introduced earlier this year. As the EU tentatively concluded that Apple's App Store operations violated the DMA, Apple now faces the risk of paying fines up to 10% of its global revenue.

On the 24th (local time), the EU Commission announced that it had notified Apple of the preliminary investigation results stating that the App Store regulations violated the DMA. This is the first time the EU has determined a Big Tech company violated the law since the DMA came into effect in March.

The EU Commission explained, "Apple currently does not allow application (hereafter app) developers to freely direct consumers to alternative means outside of Apple."

The EU Commission pointed out that Apple's App Store rules do not permit developers to provide price information within the app or communicate with consumers about services available outside the App Store. It also viewed the fees Apple imposes on transactions outside the App Store as excessive.

The EU Commission stated, "The DMA focuses on ensuring an open and competitive market," adding, "It is surprising that some of the world's most valuable and respected large corporations do not regard compliance with regulations as an honorable badge."

The DMA, fully enforced by the EU since March, strictly prohibits Big Tech companies from using their platforms to favor the sale of their own services. Platform operators above a certain size are designated as 'gatekeepers,' including Alphabet (Google's parent company), ByteDance (TikTok's parent company), Amazon, Apple, Meta, Microsoft (MS), and Booking.com as the seven major gatekeepers. These companies must take measures to ensure fair competition between their own platforms and external platforms, and preferential treatment of their own services is prohibited. Since March, the EU has begun investigating whether Apple, Alphabet, and Meta have violated the DMA.

Regarding the EU's preliminary conclusion that Apple violated the DMA, Apple stated, "We are confident that our plans comply with the law," and added, "We will listen to and cooperate with EU regulators."

The EU Commission will consider Apple's opinions comprehensively and make a final decision, including the level of sanctions, by March 25 next year.

With the EU Commission's DMA violation judgment, Apple faces renewed comprehensive pressure in Europe and the United States over allegations of restricting market competition. Earlier, in March, the EU Commission fined Apple 1.84 billion euros for abusing its dominance in the music streaming app market. The U.S. Department of Justice also filed an antitrust lawsuit against Apple in the New Jersey federal court the same month, arguing that Apple's closed mobile ecosystem operation blocks consumers from using innovative features and switching to competitors' products.