European Union regulators have launched an investigation into Apple Inc (NASDAQ:AAPL, ETR:APC)., alleging that its App Store rules violate the bloc's Digital Markets Act (DMA) by restricting app developers from directing consumers to alternative offers.
The European Commission, the EU's executive body, announced today that it is scrutinizing Apple's new contractual terms for third-party app developers and app stores.
"Apple’s new slogan should be ‘act different’. Today we take further steps to ensure Apple complies with the DMA rules,” said Thierry Breton, the EU internal market commissioner.
Under the DMA, companies found guilty of violating the rules can face penalties of up to 10% of their global annual revenue, with potential increases to 20% for repeated offenses.
Apple responded by stating it had "made a number of changes to comply with the DMA in response to feedback from developers and the European Commission."
"We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created," Apple added.
In January, Apple made significant changes to its iOS software, App Store, and Safari browser in the EU to address competition concerns. However, on Friday, the company announced it is delaying the rollout of AI-enabled features on iPhones in the EU due to uncertainties from new tech regulations.
Apple faces increasing pressure from EU regulators and was fined €1.8 billion this year for limiting competition from rival music streaming services, a fine the company is currently contesting in EU courts