The European Union Considers Apple's Virtual Store a Violation of Competition Laws

The European Commission, in its first ruling based on new regulations governing competition in the digital space, accused Apple of restricting consumers' access to cheaper applications in its virtual store. On Monday, July 4, the Commission stated that initial investigation results indicate that the restrictions imposed by Apple in its virtual store violate the EU regulations known as the "Digital Markets Act." The Commission said, "Apple's virtual market regulations prevent customers from being directed towards alternative options and products offered by other application developers." The aim of the "Digital Markets Act," the latest EU regulation for overseeing trade in the digital arena, is to prevent the influence of large digital technology companies to stop smaller players from entering this commercial space, with heavy penalties for violators. Following the approval of this law in March, the European Commission launched extensive investigations into Apple's practices, part of which relates to enabling iPhone users to change their internet browser, which is still ongoing. In addition to Apple, the responsible bodies in the European Commission have also initiated investigations into the practices of Meta and Google. The EU has fined Apple $2 billion. According to the "Digital Markets Act," new application developers must be able to introduce their products, including cheaper options, to consumers, and the virtual markets of large companies like Apple and Google are required to direct customers toward these options. Apple can now respond to this ruling through legal channels. The European Commission must issue its final ruling on this matter by March 2025. If Apple's violation is proven, it may face fines of up to 10% of its global profits, which would amount to billions of dollars, or amounts based on its daily revenue. Meanwhile, the European Commission has intensified pressure on Apple by continuing investigations into the contracts it has with application developers. Apple has previously charged a commission of 50 cents (half a euro) for each of its applications in other virtual stores. However, the European Commission announced that Apple does not have the right to charge such a commission, and the "Digital Markets Act" encourages the establishment of alternative virtual stores that give consumers more choice. Apple's competitors have also criticized this commission, stating that it prevents consumers from accessing free applications. Margrethe Vestager, the European Commissioner for Competition, wrote on social media: "We are concerned about the barriers that Apple's new business model creates for the establishment of alternative virtual markets by new application developers and consumer access to them." Apple claims that in recent months, based on the opinions and recommendations of the European Commission and new technology developers, it has made changes to its operations. The company stated: "We are confident that our plans fully comply with the law, and more than 99% of technology creators agree with this amount of commission or slightly less under our new business regulations." The statement added: "All digital technology creators using Apple's virtual store within the borders of the EU benefit from all the capabilities and features we have provided, including directing consumers toward purchasing cheaper products."