Brussels has leveled accusations against Apple, claiming the tech giant is hindering competition on its App Store. This marks the first instance of EU regulators invoking the new Digital Markets Act (DMA) against a major technology company.

The European Commission has long prepared to leverage the full power of its DMA, which was designed to promote competition by compelling dominant “online gatekeepers” — primarily US-based tech firms — to open their platforms to competitors. These regulations came into effect in March.

Regulators are particularly concerned about the restrictions Apple places on developers, preventing them from directing customers to promotions outside of the App Store. Thierry Breton, the EU internal market commissioner, commented, “Apple’s new slogan should be ‘act different’. Today we take further steps to ensure Apple complies with the DMA rules.”

If Apple is found guilty, it could face fines of up to 10% of its global annual revenue, potentially amounting to tens of billions of dollars. Repeat offenses could see this penalty increase to 20%. Apple, however, maintains confidence in its compliance with the rules.

At a conference in Amsterdam, Margrethe Vestager, the EU’s executive vice-president in charge of digital policy, emphasized the significance of dealing with the world’s largest and most valuable companies. She stated, “The DMA is not an excessive ask. It is plain vanilla to ask for a fair, open and contestable marketplace.” She also expressed surprise that such esteemed companies do not regard compliance as a badge of honor.

The commission’s preliminary findings, initiated in March, must be finalized within a year. Additionally, the commission announced an investigation into whether Apple’s developer fees violate EU rules. These fees include a charge of 50 cents per download for apps used by more than one million people.

As part of the probe, the commission is examining if Apple imposes excessive restrictions on users seeking to download and install alternative app stores. Apple claims to have implemented several changes to align with the DMA, based on feedback from developers and the commission.

In a statement, Apple said, “We are confident our plan complies with the law, and estimate more than 99 percent of developers would pay the same or less in fees to Apple under the new business terms we created.”

In January, Apple introduced significant changes to its iOS mobile software, app store, and Safari web browser in the EU to address competition concerns. Recently, the company announced a delay in the rollout of AI-enabled features on iPhones in the EU, citing uncertainties due to new tech regulations.

Apple faces mounting pressure from EU regulators and was fined €1.8bn earlier this year for allegedly stifling competition from rival music streaming services, a fine it is currently contesting in EU courts.

Markus Ferber, a German MEP, commented, “If the Commission indeed finds that Apple infringes the letter or the spirit of the DMA, it has to impose fines that really hurt – that is the only language Big Tech understands.”