In a move that could shake the tech industry to its core, the European Commission has charged Apple with violating the Digital Markets Act (DMA), a regulation designed to promote competition in the EU’s tech space. Apple, the first company to face charges under the Act, is under fire for its App Store’s anti-steering practices, which the Commission claims unfairly restricts app developers.
Apple’s Payment Restrictions Under Investigation
The investigation found that Apple prevented developers from including external links for payment within apps, instead requiring them to use special “link-outs” that come with a hefty fee. The DMA, however, mandates that app stores allow developers to steer users to external sites for payment without charging them a commission.
EU’s Stance on Competition and Developer Independence
According to Margrethe Vestager, the EU’s executive vice president in charge of competition policy, “Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers.” Apple, on the other hand, claims that its plan complies with the law and that over 99% of developers would pay the same or less in fees under its new business terms.
Potential Consequences for Apple: Massive Fines Ahead
The stakes are high, with Apple potentially facing a fine of up to 10% of its yearly revenue – a whopping $30 billion USD. This move by the EU could have far-reaching implications for the tech industry, as other companies may soon face similar scrutiny.
Stay tuned to Wally for updates on this developing story, as the EU and Apple engage in what could be a game-changing battle over the future of tech competition.
