Apple is facing some very serious challenges in complying with the Digital Markets Act in Europe. This is what’s going on.
Apple ignores Digital Markets Act compliance
The European Commission opened an investigation into Apple in March. She wanted to determine whether the changes Apple made to the European App Store comply with the regulations of the Digital Markets Act (DMA).
The DMA requires Apple to allow developers to distribute apps outside of the App Store without incurring App Store fees. Apple introduced this support with iOS 17.4. The company still charges developers a fee of 0.50 euros for each download after the first 1 million annual installations.
Changes do not meet the requirements
European Commissioner for Competition Margrethe Vestager does not believe that Apple’s changes meet the requirements of the DMA. She says, “We have some serious issues with Apple.” She further says that the implementation is not what is expected of such a company and that DMA rules will be enforced.
If Apple is found to be violating the terms of the Digital Markets Act, the European Union could impose fines. Fines of up to five percent of average daily global turnover (over $1 billion). The Financial Times reported last week that the European Commission plans to sue Apple for violating the DMA.
Apple still has time to make changes to iOS before the indictment is announced by regulators. The European Commission is expected to make an announcement in the coming weeks. It is quite possible that even more changes will follow in the App Store, so that Apple ultimately complies with European regulations.
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