06:54 AM EDT, 06/24/2024 (MT Newswires) -- The European Commission said Monday it has preliminarily found that Apple's ( AAPL ) App Store violated the continent's Digital Markets Act by preventing app developers from steering customers to other channels for offers and content.

EU laws require Apple ( AAPL ) to allow developers on the App Store to disclose alternative and potentially less expensive purchasing options. Apple's ( AAPL ) current rules for developers to be listed on the App Store "cannot provide pricing information within the app or communicate in any other way with their customers to promote offers available on alternative distribution channels," the regulator said.

The findings were preliminary, and the commission said Apple ( AAPL ) has "the possibility to exercise its rights of defense." If the preliminary allegations stand, the commission will decide by March 25, 2025. The commission can impose fines of up to 10% of the company's worldwide revenue and up to 20% in case of repeated violations.

"The developers' community and consumers are eager to offer alternatives to the App Store," said Margrethe Vestager, executive vice president in charge of competition policy at the European Commission. "We will investigate to ensure Apple ( AAPL ) does not undermine these efforts."

The commission also said it has launched another probe of the company over allegations that its newly updated requirements for third-party app developers on its App Stores are also not in compliance with the Digital Markets Act by charging companies unreasonable fees. It is examining whether Apple ( AAPL ) has made it too difficult to install and download other app stores or apps on its iPhones.

The commission in March launched a probe of Apple ( AAPL ), Google (GOOG), and other designated tech "gatekeepers" for potential violations of competition rules under the Digital Markets Act.

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