The European Union has leveled charges against Apple, alleging the tech giant violated new digital competition laws by restricting developers from directing customers to alternative payment methods within its App Store.
These charges, unveiled Monday, mark the first accusation under the Digital Markets Act (DMA) that the European Commission has been gearing up for years to use.
The act, aimed at reigning in Big Tech’s dominance, was designed to help startups by forcing powerful “online gatekeepers,” like Apple, Google and Meta, to open up their businesses to competition. These tech giants now face scrutiny over control of digital marketplaces and app stores.
The European Commission’s inquiry, initiated in March, alleges Apple’s actions breach the DMA, potentially leading to a fine of up to 10% of its global revenue, approximately $38.3 billion.
If Apple repeats the offense, the fine could double to 20%.
The Commission contends that Apple’s restrictions prevent developers from communicating pricing information directly within their apps or steering customers to better deals elsewhere.
Apple argues it has already adjusted its policies to comply with the law and continues to engage with regulators.