The company’s App Store policies are illegal under the European Union’s Digital Markets Act, according to regulators in Brussels.
Apple is imposing unfair restrictions on developers of applications for its App Store in violation of a new European Union law meant to encourage competition in the tech industry, regulators in Brussels said on Monday.
Apple is the first company to be charged with violating the Digital Markets Act, a law passed in 2022 that gives European regulators wide authority to force the largest “online gatekeepers” to change their business practices.
The charges signal that the European Union, already known as an aggressive regulator of the tech industry, plans to intensify its crackdown. Amazon, Google and Meta are also facing investigations under the new competition rules, while TikTok and X are facing probes under another law intended to force internet companies to more aggressively police their platforms for illicit content.
The E.U. rules threaten to fragment the global tech market as companies delay the releases of certain products and services because of regulatory concerns. Last week, Apple said it would not release a software update for iPhone users in the European Union that included new artificial intelligence features because of “regulatory uncertainty.” Meta did not release Threads, its Twitter-like service, in the bloc until five months after it was available in the United States for similar reasons.
The charges brought on Monday further escalated a tussle between Apple, which says its products are designed in the best interest of customers, and E.U. regulators, who say the company is unfairly using its size and considerable resources to stifle competition.
After initiating an investigation in March, E.U. regulators said Apple was putting unlawful restrictions on companies that make games, music services and other applications. Under the law, also known as the D.M.A., Apple cannot limit how companies communicate with customers about sales and other offers and content available outside the App Store. The company faces a penalty of up to 10 percent of global revenue, a fine that could go up to 20 percent for repeat infringements, regulators said. Apple reported $383 billion in revenue last year.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.