Apple Investigated for Violating Digital Markets Act by Limiting Competition in European App Stores

Apple has been accused of violating the European Union’s Digital Markets Act (DMA) by restricting app developers from redirecting consumers to alternative stores, a practice that is essential for reducing developers’ reliance on gatekeeper app stores and ensuring that consumers have access to the best deals. The European Commission has opened a new investigation into Apple’s support for alternative iOS marketplaces in Europe, with a focus on its controversial developer tax. Failure to comply with these regulations could result in fines of up to 10% of annual global revenue, which for Apple could amount to $38 billion based on last year’s figures. Earlier, Apple was fined 1.84 billion euros by EU antitrust regulators due to anti-redirection practices in the App Store, a case that predates the DMA. The new investigation by the European Commission focuses on Apple’s basic technology tax, the complexity of setting up third-party marketplaces, and the eligibility criteria for developers. Margrethe Vestager, head of competition policy in Europe, emphasized the importance of allowing competition in the developer community and ensuring that Apple does not obstruct these efforts. Apple has until March 2025 to respond to the Commission’s preliminary assessment before a final decision is reached.