Apple is at risk of becoming the first company fined for violating the European Union’s Digital Markets Act (DMA), according to a report from Bloomberg. Block authorities have determined that grocery store policies apps of the firm limit competition and restrict the right of choice of users. They would be preparing an economic sanction that could be equivalent to 10% of the annual income of the big tech.
The DMA came into force in May last year with the purpose of regulating platforms, companies and services that have a “dominant, established and durable position” in the market. It requires, among other things, that the design of mobile operating systems allows the installation of application stores other than those of the manufacturer. Thus, services such as Google Play or the Apple App Store must coexist with other stores on users’ devices if they so decide. Additionally, the use of alternative payment options for purchases should be allowed. in-app and facilitate access to commercial offers outside the ecosystems of large technology companies.
The European Commission opened an investigation against Apple earlier this year to determine whether the conditions of use of the App Store violated the provisions of the DMA. It concluded that certain operations represented a disregard for the law. The company led by Tim Cook modified the operation of its platform to address these concerns.
The iPhone manufacturer incorporated new APIs and mechanisms for developers to publish their apps in alternative stores. It gave users the ability to access other app stores, use third-party payment methods, and make sideloadingthe process of transferring files between two local devices. It warned that these adaptations pose “potential risks” to the privacy and security of users.
“The new ways to process payments and download applications on iOS open up unknown avenues for the malwarefraud and scams, illegal and harmful content and other threats. “That is why we are introducing protections to reduce risks (although they do not eliminate them),” he said in a press release.
The security measures implemented by the company force the creators of apps to pay a 10% fee on in-app transactions and an additional 3% fee for using Apple payment processing. They contemplate a “Basic Technology Fee”. Programs must pay an amount of 0.50 euros for each first annual installation once they exceed the threshold of one million downloads. The measure applies to software distributed from the App Store and/or alternative stores.
Apple is in the crosshairs of regulators
The European competition regulator said in June that these modifications were insufficient to fully comply with the regulations. Bloomberg Now he says the agency is preparing a penalty because Apple has refused to allow developers to direct users to more affordable offers outside the App Store.
The information highlights that the sanction could be officially published at the end of this month. It does not specify the amount, but the DMA contemplates fines for non-compliance of up to 10% of the total worldwide business volume of the offending company. The figure increases to 20% in case of recidivism. Apple’s global revenue in 2023 amounted to more than $383 billion.
The Cupertino-based corporation faces multiple antitrust proceedings. In March, the U.S. Department of Justice and more than a dozen state attorneys general filed a lawsuit against him. They allege that the organization has established an anti-competitive environment around the iPhone that impacts sectors beyond the smartphone industry. smartphones, including financial services, fitnessgames and media.
“This case is about freeing markets from Apple’s exclusionary conduct. The intention is to restore competition, lower phone prices for consumers, reduce fees for developers and preserve innovation for the future,” the lawsuit states.
#Apple #company #fined #violating #Europes #Digital #Markets #Law
