The European Union (EU) has issued a warning to Apple regarding its App Store practices, prompting the tech giant to announce significant changes to comply with new competition regulations. Starting this fall, developers will be able to promote offers available outside the App Store, allowing them to link users to alternative destinations. This move comes after a preliminary opinion from Brussels determined that Apple's current App Store rules violate the Digital Markets Act (DMA), which aims to foster competition and support the growth of startups in Europe.
If the EU finds Apple's adjustments unsatisfactory by March 2025, the company could face fines of up to 10% of its global turnover, potentially escalating to 20% for repeated violations. The DMA not only targets Apple but also applies to other major tech firms, including Alphabet, Amazon, Meta, Microsoft, TikTok, and Booking.com, all of which are under scrutiny for compliance issues.
This isn't Apple's first encounter with EU regulations; earlier this year, the company was fined 1.8 billion euros following a complaint from Spotify. The EU accused Apple of imposing restrictions that hindered developers from promoting cheaper alternatives outside its ecosystem, thereby favoring its services like Apple Music. Apple has since appealed this decision, asserting its compliance with existing antitrust rules.
