infotech

Apple Faces Potential Fines After Being Discovered To Have Violated Provisions Of The DMA

 Following an extensive investigation into Apple's alleged violation of the EU's Digital Markets Act (DMA), the European Commission has released its preliminary conclusions.

The main point highlighted in the conclusions is that Apple has contravened the DMA by restricting app developers on the App Store from communicating alternative payment methods to their users outside of Apple's platform.

Should Apple be proven guilty, the company could face a penalty of up to 10 percent of its total global annual revenue.

The European Commission initiated the investigation into Apple in March, and the EU regulatory body has a year to finalize its preliminary conclusions. This marks the first legal action carried out under the DMA regulation.

According to the initial findings of the European Commission, it is believed that Apple's recent measures do not grant developers the freedom to guide customers towards alternative payment choices.

The European Commission highlighted that Apple restricts developers from informing users about the price variations when utilizing payment methods that are not part of Apple's ecosystem.

Apple solely permits developers to utilize link-outs or links to web pages for payment transactions.

"The link-out procedure is subjected to various limitations imposed by Apple, which hinder app developers from communicating, promoting deals, and finalizing agreements through their preferred distribution channels," stated the European Commission in its announcement, as reported by Engadget on Tuesday.

The European Commission stated that Apple can charge developers for facilitating the acquisition of new customers through the App Store, but the fees imposed by Apple are deemed excessive. 

Developers are required to give Apple a percentage of up to 30 for each transaction conducted on the App Store. Consequently, developers have the option to provide lower prices to consumers if they opt to make purchases outside the App Store.

In addition, the European Commission has initiated a fresh inquiry into Apple for potential violations of other provisions within the Digital Markets Act (DMA).

The core technology fees imposed by Apple on developers to access certain new features resulting from the establishment of the DMA, such as the capability to install third-party app stores on Apple devices and explore alternative app download methods via the web, were emphasized by the EU. Numerous rivals of Apple have expressed their disapproval of these fresh obligations. Nevertheless, Apple recently decided to exempt small, non-commercial app developers from paying the core technology fee.

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Tag: Apple DMA