iPhone maker Apple fined over one million euros by Paris court over App Store practices

The Paris Commercial Court on Monday fined iPhone maker Apple just over one million euros (nearly Rs. 8 lakh) for imposing unfair commercial terms on app developers French for access to the company’s App Store, according to the court’s decision.

The ruling, seen by Reuters, said there was no need to order Apple, which has a market value of around $2.1 trillion (nearly Rs. 1,73,57,700 crore), to change the terms of the App Store because digital markets entering the European Union The law would require changes in any case.

Although small compared to the huge profits generated by Apple, the fine from the Paris court is another sign of the legal pressures Apple faces to loosen its grip on the App Store, so far the only gateway allowing alternative application developers to access customers.

An Apple spokesperson said the US company would reconsider the decision and believed “in dynamic, competitive markets where innovation can flourish.”

“Through the App Store, we’ve helped French developers of all sizes share their passion and creativity with users around the world while creating a safe and trusted space for customers,” the spokesperson added. .

Apple faces heightened antitrust scrutiny over its contracting practices following the passage of new EU legislation that targets so-called online digital “gatekeepers” – tech companies whose platforms and software are become essential for small digital businesses.

The Digital Markets Act (DMA), in particular, will require Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices.

The DMA came into force on November 1 and there is now a six-month implementation phase before it begins to apply in large part from May 2, 2023.

© Thomson Reuters 2022

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