The EU targets Apple again: App Store terms face EU antitrust complaints

Apple Inc. is facing a new round of regulatory pressure in Europe.

According to media reports on the 22nd, two civil rights organizations have submitted complaints to the EU antitrust regulators, accusing Apple of violating the EU's landmark regulation, the Digital Markets Act (DMA), with the terms and conditions of its App Store.

The two organizations, named "Article 19" and the German "Society for Civil Rights," jointly filed this complaint with the European Commission. The complaint specifically targets the commercial terms set by Apple for its App Store, iOS, and iPadOS operating systems, claiming that these terms prevent and hinder interoperability for small businesses with Apple devices.

The complaint calls for the European Commission to impose fines on Apple, which could have significant financial implications for the company. Under the DMA, fines can reach up to 10% of a company's global annual revenue. Earlier this April, Apple was fined €500 million (approximately $583 million) for violating the DMA, and this new complaint undoubtedly increases the regulatory risks it faces.

Complaint Directly Targets Interoperability Barriers

According to media reports, the core of this 16-page complaint is that Apple's commercial terms are deemed to violate the core purpose of the DMA. The DMA outlines a list of "dos and don'ts" for large tech companies, aiming to open up markets dominated by giants for smaller competitors and provide users with more choices.

The complainants argue that Apple's current terms restrict the installation and use of third-party software applications and app stores, harming the interests of business users and end-users. Specifically, these terms are accused of failing to effectively achieve the interoperability required by the DMA, setting unfair barriers for small developers.

The complaint document specifically points out a particular financial threshold. Apple requires developers who wish to distribute apps on the Apple platform or install third-party app stores as native apps on iOS and iPadOS to provide a standby letter of credit (SBLC) worth €1 million.

The complainants assert that this requirement poses an insurmountable barrier for many small and medium-sized enterprises (SMEs). The complaint document states:

"A €1 million standby letter of credit incurs ongoing annual costs and collateral requirements that many SMEs cannot meet."

Apple Faces New Risk of Fines

This complaint could expose Apple to hefty fines in the EU once again. The two civil rights organizations explicitly urge the European Commission to penalize Apple. The DMA grants regulators significant enforcement powers, with a maximum fine set at 10% of a company's global annual revenue, which would amount to astronomical figures for a tech giant like Apple.

This incident is not isolated. Apple's operations in the EU are under continuous scrutiny. In April of this year, the company was fined €500 million for violating DMA-related regulations. The new complaint indicates that the adjustments Apple has made to comply with the DMA are still viewed by some organizations as insufficient, and its legal and financial risks in the European market are continuously accumulating