Apple receives EU warning over app store regulations

Apple may not comply with new European Union digital competition rules over how it runs its app store, the European Commission said, as it also added a fresh probe into the company’s fee for developers.

The Commission said its preliminary view is that Apple "is in breach" of the Digital Markets Act for app store rules that prevent developers from sending consumers to alternative ways to pay or to get content outside of Apple’s ecosystem.

"Our preliminary position is that Apple does not fully allow steering," said EU competition chief Margrethe Vestager in an emailed statement. "Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers."

Apple can defend itself in writing until the European Union regulator makes a final decision by March 25 that the company has violated the rules. It could then be fined up to 10 percent of its worldwide revenue.

The Commission also opened a new non-compliance probe into the fees Apple charges developers for user downloads.

Apple is "confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created," said company spokesperson Julien Trosdorf.

Apple is the first Big Tech company the Commission has called out for breaking the DMA’s strict rules designed to make it easier for smaller players that rely on app stores and search engines to get customers. The EU antitrust enforcer is also investigating Google-owner Alphabet and Facebook’s Meta over alleged breaches of the law.

The company has been at war with competition enforcers over the terms it sets for its app store. It is separately challenging a €1.8 billion fine over rules it imposes on music streaming platforms like Spotify in court.

Apple has also been a vocal opponent of the DMA, saying the changes it has already had to make to its iPhones’ operating system in Europe expose users to malware attacks. Last week it said that "regulatory uncertainties" stopped it from launching new artificial intelligence features in the region.