Apple Is First Company Charged Under New E.U. Competition Law

Apple is being accused by regulators in the European Union (EU) of imposing unfair restrictions on developers of applications for its App Store, which violate a new EU law aimed at promoting competition in the tech industry. This dispute adds to the ongoing conflict between Apple and EU regulators, with Apple claiming their products prioritize customer interests while regulators argue that the company is leveraging its size and resources to hinder competition. Apple is the first company to face charges under the Digital Markets Act, a 2022 law empowering EU regulators to enforce changes to the practices of major online platforms. Regulators investigating the matter since March claim that Apple is placing unlawful constraints on companies offering games, music services, and other applications. The charges allege that Apple cannot limit communication between companies and customers regarding sales, offers, and external content available outside the App Store. If found guilty, Apple may face a penalty equivalent to 10% of its global revenue, with potential increases for repeat offenses. A decision is expected by March of next year.