Apple's App Store policies under attack under new EU competition law

Regulators in Brussels said on Monday that Apple was imposing unfair restrictions on developers of apps for its App Store, violating new European Union laws aimed at promoting competition in the technology industry.

Apple is the first company to be charged with violating the Digital Markets Act, a law passed in 2022 that gives European regulators broad powers to force the largest online gatekeepers to change their business practices.

The charges suggest the European Union, already known for aggressive regulation of the tech industry, plans to step up its crackdown. Amazon, Google and Meta also face investigations under new competition rules, while TikTok and X face investigations under a separate law aimed at forcing internet companies to more closely police their platforms for illegal content.

EU rules threaten to fragment global tech markets as companies delay the release of certain products and services over regulatory concerns. Last week, Apple said it would not release a software update with new artificial intelligence features to iPhone users in the EU due to regulatory uncertainty. Meta also released its Twitter-like service, Threads, in the EU five months after it was available in the US for similar reasons.

The charges filed on Monday further escalated a battle between Apple, which says its products are designed in the best interests of its customers, and EU regulators who say the company is unfairly using its size and significant resources to stifle competition.

EU regulators launched an investigation in March, saying Apple was imposing illegal restrictions on companies that develop games, music services and other apps. Under the law, also known as the DMA, Apple cannot restrict how companies communicate with customers about sales and other offers or content available outside the App Store. The company could be fined up to 10% of its global revenue, and for repeated violations the fine could rise to up to 20%, the regulators said. Apple reported revenue of $383 billion last year.

“Today is a crucial day for the effective enforcement of the DMA,” said Margrethe Vestager, the European Commission's executive vice-president in charge of competition policy. Vestager said Apple's App Store policies make developers more dependent on the company and prevent consumers from discovering better offers.

EU regulators said the charges were provisional and gave Apple a chance to respond, with a final decision due to be announced by March next year.

Apple has defended its practices, saying its rules and fees are a fair deal to give it a large platform to reach consumers. The company said developers can also direct consumers to websites where they can make purchases outside the App Store.

In a statement, Apple said it has made a number of changes over the past few months to comply with the DMA in response to feedback from developers and the European Commission, and “we are confident that our plans comply with the law.”

Tommaso Valetti, a former top tech economist at the European Commission, said regulators are trying to build a reputation for being tough but face challenges when it comes to forcing companies like Apple to change their business practices. They may be heading for a legal battle that could take years to resolve, but it could set a precedent for future regulation of the tech sector and the digital economy.

The European Commission has asked Apple to open up its ecosystem, but the company has refused, said Baretti, now a professor of economics at Imperial College London. Apple is essentially saying, “See you in court.”

Apple's regulatory troubles are a sign of growing government scrutiny of the tech industry around the world. In the United States, Apple is being sued by the Department of Justice for operating an illegal monopoly in the smartphone market. Apple has also argued in federal court that it is entitled to receive up to 27% of sales of certain apps through third-party payment systems, but developers argue this violates a 2021 court decision.

Japan and the United Kingdom, which have since left the European Union, are also pushing for rules to limit Apple's control over the App Store.

The European Union has long been at the center of regulatory efforts to crack down on the world's largest tech companies, but the Digital Markets Act gives authorities new powers to intervene without the lengthy process of filing traditional antitrust lawsuits, which can take years to resolve.

Another new law, called the Digital Services Act, gives regulators more power to police social media platforms and illegal online content, including material that is harmful to children. Meta, TikTok and X are under investigation for possible violations.

In January, Apple announced a list of changes to its App Store policies to comply with the Digital Markets Act, including allowing users to download competing app stores for the first time, and lowering the service fee it charges companies for sales through the App Store from 30% to a maximum of 17%.

Apple has made other changes that have angered developers, such as imposing a core technology fee of 50 euro cents per download after an app is downloaded more than 1 million times within 12 months. Spotify and Fortnite maker Epic Games said the changes amounted to a new anti-competitive tax and were among the companies that called on regulators to intervene.

The European Commission announced it would launch a separate investigation into Apple's technology fees, saying they may not be sufficient to ensure effective compliance with Apple's obligations under the DMA.

Sources 1/ https://Google.com/ 2/ https://www.nytimes.com/2024/06/24/technology/apple-european-union-competition-law.html The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos