Apple was the subject of a complaint to European Union competition bodies on Wednesday from two civil rights groups over the terms and conditions of its App Store for allegedly violating rules aimed at policing Big Tech.
The joint complaint by Article 19 and the German Society for Civil Rights to the European Commission could represent a further headache for Apple, which in April was fined 500 million euros for violating the Digital Markets Act (DMA).
Apple, which has previously said its rules ensure marketplaces meet specific minimum requirements to protect users and developers, dismissed the allegations as false and placed blame on the Commission.
“The European Commission is determining how we operate our store and imposing commercial terms that are confusing for developers and harmful to users,” Apple said in an email.
“We notified the Commission months ago of our plans to implement additional changes to the letter of credit requirements to provide greater flexibility to developers, but the Commission asked us not to do so.”
The European Union’s executive, which acts as the bloc’s competition watchdog, said it was aware of the proposal.
“Third-party contributions are very important for the effective implementation of the DMA,” said a Commission spokesperson.
“We are already looking into (some of) these issues as we are currently seeking feedback from market participants regarding Apple’s trading terms and regularly monitoring gatekeepers’ compliance with the rules.”
The DMA establishes a list of permitted and prohibited practices for large tech companies, with the goal of allowing smaller competitors to enter markets dominated by larger companies and offering more options to users.
The complaint targets Apple’s terms and conditions of business for the App Store and its iOS and iPadOS operating systems, saying they prevent small businesses from interacting with Apple devices.
The lawsuit also criticizes restrictions on the installation and use of third-party software applications and app stores that it claims harm businesses and end users by violating the DMA.
Civil rights groups have highlighted a €1 million stand-by letter of credit (SBLC) required of developers who want to develop apps for distribution on Apple’s App Store or who want to install a third-party app store as a native app on Apple’s iOS and iPadOS.
“A €1,000,000 SBLC may impose recurring annual costs and warranty requirements that many SMEs are unable to meet,” reads the 16-page lawsuit seen by Reuters.
The groups asked the Commission to fine Apple. Fines can reach 10% of a company’s global annual revenue.
Source: Terra

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