EUROPEAN UNION regulators accused Apple of breaking new rules on digital competition by preventing software developers on its App Store from steering users to other venues.

The European Commission said that based on preliminary findings of its investigation, the iPhone maker breached the 27-nation bloc's Digital Markets Act (DMA), aimed at preventing tech giants from cornering digital markets. The commission, the bloc's executive arm, said Apple's rules for its App Store "prevent app developers from freely steering consumers to alternative channels for offers and content".

Apple now has a chance to respond to the findings, which the commission will assess. It must make a final decision on Apple's compliance by March 2025. The company could face fines worth up to 10 per cent of its global revenue, which could amount to billions of euro, or daily penalties.

The commission kept the pressure on Apple, by opening a new investigation into compliance with the DMA looking at new contractual terms that Apple offered app developers.

Regulators zeroed in on a "core technology fee" of 50 euro cents (42p) that Apple is now charging developers for each time their apps are downloaded from outside Apple's App Store.

Apple said over the past several months, it "has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission".

(c) 2024 City A.M., source Newspaper