Apple is breaking the law according to the EU - this could be expensive

On Monday, the EU Commission published its preliminary findings in the investigation against Apple. According to the findings, the iPhone manufacturer is in breach of the Digital Markets Act (DMA). Apple now has the right to submit a written defence. The final decision will be made in March 2025 at the latest, with Apple facing a heavy fine.

The preliminary finding concerns the so-called steering regulations. According to these, gatekeeper companies such as Apple must enable app developers to direct users to alternative channels for offers and content. For example, a website where a subscription is cheaper than if it is taken out directly in the app.

"Apple's terms and conditions do not allow developers to freely direct their customers," the commission writes. For example, developers cannot provide pricing information within the app. In addition, Apple charges a far too high referral fee if clicking on the external link leads to sales. It applies to all purchases of digital products that a user makes within seven days of leaving the app.

Apple: "Fees are competitive"

Apple vows to continue working with the commission. Spokesman Peter Ajemian tells The Verge: "Over the past few months, in response to feedback from developers and the European Commission, Apple has made a number of changes to comply with the DMA."

Ajemian describes the price for redirecting to external offers as "very competitive".

In addition to the investigation into the alleged breaches of the steering rules, the EU has launched a second investigation. It concerns the implementation of the alternative app stores - more specifically Apple's so-called "core technology fee" and the high hurdles for sideloading on the iPhone.

Fines up to 38 billion US dollars

If the Commission comes to the definitive conclusion that Apple is in breach of the DMA, the Californians could face a fine. This can amount to up to ten per cent of global turnover. In Apple's case, this would be around 38 billion US dollars - over a third of its annual profit. This maximum even doubles in the event of repeated offences.

It is unlikely that the EU would immediately impose such a high fine for the first offence. But the message from Competition Commissioner Margrethe Vestager is clear: the DMA is not a toothless paper tiger. Lip service and sham implementations of the new guidelines are not enough - the gatekeeper companies should implement the law as it is intended. Apple is not the only manufacturer under investigation.

No AI for Europe - Apple's tit-for-tat response?

Almost simultaneously with the announcement of further EU investigations , Apple announced that the new "Apple Intelligence" will not be coming to Europe for the time being - due to "regulatory uncertainties caused by the DMA". However, Apple failed to provide a more detailed explanation. At first glance, it is not clear to what extent the AI features will be affected by the DMA. Even the new AI Act does not impose strict rules on models like Apple's.

The market launch of Apple Intelligence in languages other than English is not planned until 2025 anyway. The manoeuvre therefore seems like a pre-emptive threat. The undertone: if the EU insists on rigorous implementation of its laws, European users will receive a second-class experience in the future.