European Union regulators have charged Apple with violating its Digital Markets Act by preventing developers using its App Store from directing users to cheaper alternatives. The charge is the first under the new digital competition law, which took effect earlier this year. Apple faces potential fines of up to 10% of its global revenue; Apple's total revenue amounted to $383B in 2023.
Under the DMA, which aims to prevent tech giants from monopolizing digital markets, developers must be allowed to inform customers about cheaper purchase options. However, EU regulators accused Apple of not allowing communication that promotes alternative offers on its App Store. Additionally, the European Commission is investigating if Apple's Core Technology Fee—which charges developers $0.54 per installation after the first million—breaches the DMA. Apple said it has made changes in recent months to comply with the act.
The news follows a similar antitrust lawsuit against Apple from the US Justice Department. A final EU compliance decision is expected by March 2025.
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