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The European Union (EU) said Monday that Apple (NASDAQ:) is violating sweeping new tech regulations by not allowing App Store customers to be directed to alternative options.
The European Commission, the executive arm of the European Union, also revealed that it had begun a new investigation into Apple regarding new contractual terms with developers.
In March, the European Union began investigating Apple, Alphabet (NASDAQ:) and Meta Platforms (NASDAQ:) under the Digital Markets Act (DMA), a landmark law designed to limit the dominance of big technology companies. Anti-routing rules, which prevent companies from telling users about cheaper alternatives or third-party subscriptions, were a major focus of this investigation.
On Monday, regulators said in their preliminary findings that Apple violated the DMA because its App Store rules “prevent app developers from freely directing consumers to alternative channels for offers and content.”
According to the Commission, Apple only allows routing through a system where developers can provide a link to a web page where users can purchase content, such as subscriptions. However, the committee noted that this system is “subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers, and entering into contracts through the distribution channel of their choice.”
Regulators also criticized the fees Apple charges developers for acquiring new customers through the App Store, noting that these fees “exceed what is strictly necessary.” The Commission did not specify what it considered “strictly necessary” fees.
