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Apple Accused by EC of Violating New Competition Rules

Apple Accused by EC of Violating New Competition Rules image

In latest news, Apple finds itself in a tangle with the European Commission (EC) regarding potential competition rules violation. With hefty fines on line, the tech giant is walking on thin ice.

The European Commission (EC) accuses Apple of possibly violating newly established competition rules. Apple, along with other tech behemoths like Alphabet, Amazon, ByteDance, Meta, and Microsoft, are known as gatekeepers required to comply with obligations under the Digital Markets Act (DMA), enacted in March.

This violation could potentially lead to heavy fines by the EC, amounting to up to 10% of the company's total global turnover. This could be significant chunk for the tech mammoth.

The EC communicated an initial opinion to Apple, stating that their App Store rules may contravene the DMA. This has raised concerns as the App Store policies are seen as limiting app developers in guiding customers towards alternative channels for offers and content.

Since the investigation opened on March 25, Apple has a 12-month deadline to meet the set requirements to avoid being hit by the fine, which can escalate up to 20% in case of recurring violations. Between mounting pressure and potential penalties, Apple has a challenging year ahead.

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