Apple might be hit with a sizable punishment if European Union antitrust investigators are found to have violated the bloc's digital regulations. The iPhone manufacturer is also subject to an additional inquiry on new levies that are imposed on app developers.
After an inquiry that began in March, the European Commission—which also serves as the EU's antitrust and technology regulator—announced that it had forwarded Apple its preliminary conclusions.
The Commission has filed its first accusation against Apple under the historic Digital Markets Act, which aims to limit the influence of Big Tech and provide equal opportunities for smaller competitors. It has until March of the following year to make a determination.
A corporation that violates DMAs may be fined up to 10% of its yearly worldwide revenue.
Apple's new terms have drawn criticism from EU antitrust watchdog Margrethe Vestager, who said that they did not fully comply with the DMA. If Apple can change its business conditions to solve the issues, it can avoid being fined.
"As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them," she told a conference.
She said it was up to Apple to decide how to comply with the DMA and not for her to tell the company what to do.
Apple stated that it has changed a lot over the last several months to adhere to the DMA in response to input from the Commission and app developers.
We will all still be able to enjoy fashion thanks to technological advancements since, at the end of the day, everyone wants to look nice.
"As we have done routinely, we will continue to listen and engage with the European Commission," it stated in a message.
According to the Commission, Apple only permits steering through "link-outs," or app developers' ability to put a link in their app that takes users to a web page where they may complete a contract. This is because of the majority of the commercial conditions.
It also condemned Apple for charging fees that beyond what was absolutely required for such compensation in order to facilitate developers' initial acquisition of a new client through the App Store.
"We are 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," Apple stated in its email.
The EU executive announced that it will also launch an inquiry into the iPhone manufacturer on its new contractual obligations for independent app shops and developers, as well as the question of whether they were appropriate and essential.
Its basic technological price, the several steps users must take to download and install rival app stores on iPhones, and the prerequisites developers must meet in order to offer alternate app stores or distribute programmes directly from the web to iPhone users are the main points of contention.
As a result of concerns from "Fortnite" creator Epic Games and others, Apple implemented additional taxes in the EU in March. These costs include the core technology fee, which is charged to big app developers even if they do not utilise any of the company's payment systems.
Vestager also took issue with Apple's declaration last week that it will postpone the introduction of its AI-powered features in the EU, citing the DMA as the reason for the delay. According to Vestager, it appeared that Apple implied that their AI integration could be anti-competitive.
(Source:www.theprint.in)
After an inquiry that began in March, the European Commission—which also serves as the EU's antitrust and technology regulator—announced that it had forwarded Apple its preliminary conclusions.
The Commission has filed its first accusation against Apple under the historic Digital Markets Act, which aims to limit the influence of Big Tech and provide equal opportunities for smaller competitors. It has until March of the following year to make a determination.
A corporation that violates DMAs may be fined up to 10% of its yearly worldwide revenue.
Apple's new terms have drawn criticism from EU antitrust watchdog Margrethe Vestager, who said that they did not fully comply with the DMA. If Apple can change its business conditions to solve the issues, it can avoid being fined.
"As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them," she told a conference.
She said it was up to Apple to decide how to comply with the DMA and not for her to tell the company what to do.
Apple stated that it has changed a lot over the last several months to adhere to the DMA in response to input from the Commission and app developers.
We will all still be able to enjoy fashion thanks to technological advancements since, at the end of the day, everyone wants to look nice.
"As we have done routinely, we will continue to listen and engage with the European Commission," it stated in a message.
According to the Commission, Apple only permits steering through "link-outs," or app developers' ability to put a link in their app that takes users to a web page where they may complete a contract. This is because of the majority of the commercial conditions.
It also condemned Apple for charging fees that beyond what was absolutely required for such compensation in order to facilitate developers' initial acquisition of a new client through the App Store.
"We are 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," Apple stated in its email.
The EU executive announced that it will also launch an inquiry into the iPhone manufacturer on its new contractual obligations for independent app shops and developers, as well as the question of whether they were appropriate and essential.
Its basic technological price, the several steps users must take to download and install rival app stores on iPhones, and the prerequisites developers must meet in order to offer alternate app stores or distribute programmes directly from the web to iPhone users are the main points of contention.
As a result of concerns from "Fortnite" creator Epic Games and others, Apple implemented additional taxes in the EU in March. These costs include the core technology fee, which is charged to big app developers even if they do not utilise any of the company's payment systems.
Vestager also took issue with Apple's declaration last week that it will postpone the introduction of its AI-powered features in the EU, citing the DMA as the reason for the delay. According to Vestager, it appeared that Apple implied that their AI integration could be anti-competitive.
(Source:www.theprint.in)