08:51 AM EDT, 06/24/2024 (MT Newswires) -- Apple's ( AAPL ) steering rules in its App Store marketplace are in breach of the European Commission's new digital competition law, the regulator said Monday while also opening a second probe into contract terms for developers.

The European Union's executive arm found the technology giant prevents app developers from informing consumers about alternative channels for offers and content outside its main app store, free of cost. The practice is an infringement of the commission's Digital Markets Act, which was launched in March and aims to ensure a level playing field in the digital sector.

The regulator first launched its probe into the iPhone maker in March and said it was also looking at Facebook parent Meta Platforms (META) and Google parent Alphabet (GOOG, GOOGL) for similar violations. Apple ( AAPL ) didn't immediately respond to MT Newswires' e-mailed request for comment.

"Our preliminary position is that Apple ( AAPL ) does not fully allow steering," Margrethe Vestager, executive vice president of competition policy, said in a statement. "Steering is key to ensure that app developers are less dependent on gatekeepers' app stores and for consumers to be aware of better offers."

Apple ( AAPL ) now has the possibility to "exercise its rights of defense" and respond. The regulator will need to make a final decision on the company's compliance by March next year and could fine it up to 10% of its worldwide turnover if found guilty. There is a potential for the penalty to increase to as much as 20% in case of repeated violations.

The commission opened another probe into Apple's ( AAPL ) new contractual terms for third-party app developers on the App Store. It is examining whether the company's so-called core technology fee of 0.50 euros ($0.54) per installed app complies with the Digital Markets Act and if it has made it too difficult for users to install and download other app stores or apps on its iPhones.

"We are also opening a new case in relation to Apple's ( AAPL ) new business terms for iOS," Thierry Breton, commissioner for internal market, said. "Without prejudice to Apple's ( AAPL ) right of defence, we are determined to use the clear and effective DMA toolbox to finally open real opportunities for innovators and for consumers."

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