After years of standoff with Brussels, Apple is facing a new regulatory offensive. This time, it is under the Digital Markets Act (DMA), the new European legislation governing digital giants, that the apple company will be sanctioned. At issue: its persistent refusal to open its ecosystem to application developers.
Apple’s sin: locking its App Store
Concretely, the American giant prevents application developers from directing users to offers and promotions available outside its platform. This strategy allows Apple to maintain its influence and charge its commissions on all transactions.
This practice is not new and has already cost the company dearly. In March, the European Commission fined it a record 1.8 billion euros in a similar case involving Spotify, the music streaming giant. The Digital Markets Act, new European legislation specially designed to prevent anti-competitive behavior before it permanently destroys markets, now gives Europe even greater sanctioning powers.
Despite a formal warning in June 2023 requiring Apple to give developers effective ways to redirect users out of the App Store, the Cupertino group has not changed its approach.
A sanction with serious consequences
The European Commission, under the leadership of Margrethe Vestager before her departure this month, now has a formidable arsenal. Fines can reach 10% of global turnover for a first offense, or even 20% in the event of a repeat offense.
For Apple, which has just announced quarterly revenue of $94.9 billion, the bill could be very steep. Especially since Brussels can impose daily penalties until the company complies with the law. A sum of money that the company must pay every day as long as it does not comply with the Commission’s decision.
This new confrontation is the continuation of a long series of disagreements between Apple and European regulators. From the affair of 13 billion euros of tax advantages in Ireland to the forced opening of the iPhone’s NFC chip to third-party payment services, the American giant is gradually seeing its hold on its ecosystem eroding under European pressure.
- Apple is sanctioned by Europe for its refusal to open the App Store to external offers, in violation of the Digital Markets Act.
- The European Commission can now impose fines of up to 10% of Apple’s global turnover, or even 20% in the event of a repeat offense.
- This standoff with the EU is part of a series of sanctions aimed at limiting Apple’s control over its ecosystem.
