The post Apple in Hot Water: EU charges Apple over App Store rules, alleging DMA violation appeared first on Coinpedia Fintech News
In a rising tide of regulatory scrutiny, Apple Inc. is yet again under the microscope for its app store practices. The European Union (EU) has stepped up its regulatory efforts, targeting the tech and crypto industries to promote fair competition and maintain market integrity. This approach shows how the EU is working hard to limit the power of big firms and prevent market manipulation in digital markets.
Let’s explore the details of this violation.
Here’s What the EU Demand
According to the CNBC report, the European Commission recently accused Apple of violating the new Digital Markets Act (DMA), a law designed to prevent tech giants from abusing their market positions. According to the Commission, Apple’s App Store policies restrict app developers from guiding customers to alternative purchasing options outside the App Store. This “anti-steering” practice, where businesses are blocked from informing users about cheaper alternatives, is at the heart of the violation.
If found guilty of violating the DMA, Apple could face fines of up to 10% of its global annual revenue. This marks another regulatory challenge for Apple in the EU, following a €1.8 billion fine earlier this year for anti-competitive practices in the music streaming market. Despite recent policy adjustments by Apple, the Commission remains wary of the company’s compliance with DMA regulations.
Apple’s Past and Present
This crackdown is not Apple’s first encounter with EU regulators; the company was fined €1.8 billion earlier this year for anti-competitive practices in the music streaming market. Despite recent policy adjustments, the EU remains cautious of Apple’s practices. This case underscores the EU’s commitment to enforcing the DMA and ensuring that major tech firms do not exploit their market dominance.
Crypto Market Faces Rigorous Oversight
Simultaneously, the EU is ramping up regulations on the cryptocurrency market. Italy, for instance, is set to implement stringent measures to monitor crypto-asset risks. A draft decree outlines hefty fines for insider trading, unlawful disclosure of information, or market manipulation, ranging from €5,000 to €5 million. This move is part of the broader implementation of the Markets in Crypto-Assets (MiCA) framework, which aims to bring comprehensive oversight to the crypto sector.
As MiCA takes effect, EU countries designate National Competent Authorities (NCAs) to oversee the crypto industry. Italy’s proactive stance illustrates the EU’s dedication to robust regulation in both technology and financial sectors.
What Matters?
In short, businesses in the tech and crypto sectors must adapt to new EU regulations, learning from their mistakes. The DMA limits the power of big tech firms like Apple, while MiCA targets market manipulation in crypto. Together, these changes aim for fairer competition and greater market stability, but companies will need to invest in compliance and transparency.
What do you think of the allegations against Apple?
