AMSTERDAM: A new tab is opened by Apple (AAPL.O). EU antitrust investigators claimed on Monday that software Store policies violate EU tech regulations because they prohibit software developers from directing users to other offers. This accusation could result in a significant fine for the iPhone manufacturer.
After an inquiry that began in March, the European Commission—which also serves as the antitrust and technology regulator for the European Union—announced that it had forwarded Apple its preliminary conclusions.
The Commission has filed its first accusation against Apple under the historic Digital Markets Act, which aims to limit the influence of Big Tech and provide equal opportunities for smaller competitors. It has until March of the following year to make a determination.
Apple’s new terms have raised concerns, according to EU antitrust chief Margrethe Vestager.
According to the Commission, Apple only permits steering through “link-outs,” or app developers’ ability to put a link in their app that takes users to a web page where they can complete a contract. This is because of the majority of the commercial conditions.
It also criticized Apple for charging fees that beyond what was absolutely required for such compensation in order to facilitate developers’ initial acquisition of a new client through the App Store. “We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the company statement, through e-mail. The EU executive announced that it will also launch an inquiry into the iPhone manufacturer on its new contractual obligations for independent app shops and developers, as well as the question of whether these were appropriate and essential.