The European Commission has charged Apple with breaching the EU's Digital Markets Act (DMA), alleging that the tech giant's App Store rules unfairly restrict app developers from steering consumers to alternative purchasing options.

This marks the first charge under the landmark DMA, which aims to curb the power of Big Tech and ensure fair competition.

EU antitrust chief Margrethe Vestager explained the Commission's concerns: "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." The preliminary findings suggest that Apple's current business terms fail to comply with Article 5(4) of the DMA, which requires gatekeepers to allow developers to freely inform customers of alternative, potentially cheaper purchasing possibilities.

The Commission criticised Apple's "link-out" process, which allows developers to include a link redirecting customers to external web pages for contract conclusions. However, this process is subject to several Apple-imposed restrictions that hinder developers' ability to communicate and promote offers through their preferred distribution channels.

Additionally, the EU executive opened a separate investigation into Apple's new contractual requirements for third-party app developers and app stores. This probe will examine whether these terms, including the controversial "Core Technology Fee" of €0.50 per installed app, comply with the DMA's necessity and proportionality requirements.

Thierry Breton, commissioner for Internal Market, expressed determination to enforce the DMA: "Apple's new slogan should be 'act different'. Today we take further steps to ensure Apple complies with the DMA rules. We are determined to use the clear and effective DMA toolbox to finally open real opportunities for innovators and for consumers."

Apple, in response, stated that it had made several changes in recent months to comply with the DMA after receiving feedback from developers and the Commission. The company asserted, "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."

If found in violation of the DMA, Apple could face fines of up to 10 per cent of its global annual turnover, with potential increases to 20 per cent for repeated infringements. The Commission has until March 2025 to issue a final decision on the matter.

The charges against Apple highlight the EU's commitment to enforcing its new digital regulations and ensuring fair competition in the tech sector. As the investigation progresses, it remains to be seen how Apple will respond to these allegations and potentially modify its business practices to comply with the DMA.

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