European Union regulators are accusing Apple of breaking new app store rules.
Transcript:
CONWAY GITTENS:
Stocks are kicking off the final trading week of the month after the Dow clinched its best week since May. Investors are looking ahead to a slew of housing data throughout the week as well as the Federal Reserve’s preferred inflation gauge due out Friday. Investors are expecting inflation to have cooled in May.
In other news – The European Union might hit Apple AAPL with a massive fine for failing to comply with its newly implemented Digital Markets Act. Regulators claim Apple has prevented app developers from being able to point consumers to cheaper options outside of the Apple app store. It’s the first time a company has been accused of violating the DMA.
The European Commission says that Apple’s App Store rules “prevent app developers from freely steering consumers to alternative channels for offers and content.” If found guilty, Apple faces a fine of up to 10% of its annual global revenue, which totaled $383 billion last year. In response Apple said: “We will continue to listen and engage with the European Commission.”
The Digital Markets Act was enacted in March, and the EU launched investigations into Apple, Google, and Meta. EU Regulators refer to those three companies, along with Amazon, Microsoft, and TikTok parent ByteDance, as “The Gatekeepers.”
This isn’t the only investigation the Commission launched against Apple. It’s also looking into whether the company has done enough to allow iPhone users to easily change web browsers.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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