iPhone Maker Apple Fined Over EUR 1 Million by Paris Court Over App Store Practices

The Paris Commercial Court on Monday fined iPhone maker Apple just over EUR 1 million (nearly Rs. 8 lakh) for imposing abusive commercial clauses on French app developers for access to the company's App Store, the court ruling showed.

The ruling, seen by Reuters, said there was no need to order Apple, which has a market value of about $2.1 trillion (nearly Rs. 1,73,57,700 crore), to tweak the App Store's clauses because the European Union's incoming Digital Markets Act would require changes in any case.

While tiny in size compared to the huge profits generated by Apple, the Paris court's fine is another sign of the legal pressures Apple faces to loosen its grip over the App Store, so far the only gateway for alternative app developers to access customers.

An Apple spokesman said the US company would review the ruling and believed "in vibrant and 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 secure and trusted place for customers," the spokesman added.

Apple faces heightened antitrust scrutiny over its contractual practices following the adoption of new EU legislation that targets so-called digital "gatekeepers" online — tech firms whose platforms and softwares have become unavoidable for smaller digital companies.

The Digital Markets Act (DMA) in particular will force 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 stage before it starts to apply for the most part from May 2, 2023.

© Thomson Reuters 2022