In a precedent-setting move, Apple has been officially accused of violating the European Union’s recently established digital markets regulations. The European Commission laid charges against Apple on Monday, alleging that the tech company’s App Store is inhibiting developers from directly interacting and offering deals to their users – a scenario often referred to as anti-steering.
EU Thwarts Apple’s App Store Practices
“Our initial standpoint is that Apple isn’t fully supporting steering, which is integral to ensuring that app developers aren’t overly reliant on gatekeepers’ app stores, and also promotes consumer awareness of better deals,” stated Margrethe Vestager, the EU’s competition chief. In a more scathing assessment, Thierry Breton, European commissioner for the internal market, stated, “Apple has long been suppressing innovative firms and limiting consumers’ access to new opportunities and choices.”
Referred to as “preliminary findings,” these allegations give Apple the chance to offer a counter-argument. If an agreement isn’t reached, the EU has the authority to impose fines as high as 10% of the company’s global revenue by March 2025.
A Not-So-Sweet Relationship Between Apple and the EU
Apple’s relationship with the EU has been strained for several months. An investigation into Apple’s compliance with the bloc’s competition rules was launched by Brussels in March. Of all Big Tech companies, Apple’s dealings with European developers have been the central point of contention.
Developers have expressed significant dissatisfaction with Apple’s recent business conditions, labeling the company’s policies as “oppressive,” “blackmailing,” and “unreasonably punishing.”
Apple’s Response to the Charges
Rob Saunders, an Apple spokesperson, expressed confidence on Monday that the company is adhering to all legal requirements. He affirmed that all developers conducting business in the EU via the App Store can leverage the capabilities that have been introduced.
Apple’s AI Goals Delayed Due to EU Regulations
Apple announced on Friday that due to “regulatory uncertainties,” it wouldn’t be releasing its artificial intelligence features in the EU this year. The company expressed concern that the DMA’s interoperability requirements might force it to compromise its products in manners that pose risks to user privacy and data security.
Apple isn’t the only tech behemoth that has attributed the delay in the rollout of new features to the EU’s new policies. Google postponed the EU rollout of its ChatGPT competitor, Bard, last year due to similar concerns, while Meta paused plans to train its AI on the personal data of European Facebook and Instagram users.
