The Paris Commercial Court has issued a fine of over 1 million euros ($1.06 million) to Apple, the maker of iPhones. The fine was imposed due to abusive commercial clauses on French app developers who wanted access to Apple’s App Store, according to the court’s ruling. The court stated that there was no need to order Apple to change the App Store’s clauses because the European Union’s forthcoming Digital Markets Act would require changes anyway.
Although the fine imposed by the Paris court is relatively small, it highlights the legal pressures that Apple faces regarding its App Store policies worldwide. The App Store is the only platform for app developers to reach iPhone users, as Apple does not allow the sideloading of apps. While Google does not explicitly ban sideloading, the company advises Android users against it due to potential risks to their devices and data. Apps downloaded from third-party stores do not go through the necessary security checks that apps on the Apple App Store and Google Play Store undergo. This also means there is no review of the data accessed by these apps.
In response to the fine, an Apple spokesperson stated that the company will review the ruling. The spokesperson also emphasized Apple’s belief in vibrant and competitive markets that foster innovation. They highlighted how the App Store has enabled French developers of all sizes to share their creativity with users worldwide while providing a secure and trusted platform for customers.
Apple is facing increased scrutiny of its contractual practices following the implementation of new EU legislation targeting major online platforms known as “gatekeepers.” The Digital Markets Act (DMA) came into force on November 1 and will require Apple, along with other technology companies, to allow third-party app stores on their iOS and Android devices. The DMA has a six-month implementation stage before it begins to apply more broadly from May 2, 2023.