APPLE BECOMES FIRST TARGET OF EU'S NEW DIGITAL COMPETITION RULES AIMED AT BIG TECH

European Union regulators this week leveled their first charges under the bloc’s new digital competition rulebook, accusing Apple of preventing app makers from pointing users to cheaper options outside its App Store.

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The European Commission said that according to the preliminary findings of its investigation, the restrictions that the iPhone maker imposes on developers using its mobile App Store had breached the 27-nation bloc’s Digital Markets Act.

The rulebook, also known as the DMA, is a sweeping set of regulations aimed at preventing tech “gatekeepers” from cornering digital markets under threat of heavy financial penalties. The commission opened an initial round of investigations after it took effect in March, including a separate ongoing probe into whether Apple is doing enough to allow iPhone users to easily change web browsers, and other cases involving Google and Meta.

Apple has been facing pressure on both sides of the Atlantic to tear down some of the competitive barriers around its lucrative iPhone franchise.

The U.S. Justice Department filed a sweeping antitrust lawsuit against Apple this year, accusing it of illegally monopolizing the smartphone market and boxing out competitors, stifling innovation and keeping prices artificially high. By the time that case was filed, Apple had already started to comply with a U.S. court order enabling links to alternative payment systems within iPhone apps, but a judge has expressed frustration with the company’s approach and has indicated may changes may be required.