Apple Set to Face Significant Challenge From New Competition Law

Apple Inc. faces one of the biggest challenges in how it manages and profits from the App Store as Europe prepares to pass new competition laws in the coming weeks. 

New European Union legislation could be effectively completed as early as this month, allowing Apple to download software outside of cash-generating app stores, and companies will have their own payment systems on apps. Failure to comply can result in fines of up to $10 billion.

For the past two years, iPhone makers have fought lawmakers, regulators and competitors around the world and acted as a gatekeeper for over a billion users of its devices.

Critics have accused Apple of hurting competition by forcing app developers to use its stores and payment tools, which can cost up to 30%. Apple gives consumers the option of a digital platform that has proven to be popular with customers and the proposed changes that expose users to security and privacy threats and weaken the overall iPhone experience.

Rivals and critics of Apple hope that other jurisdictions such as the USA will take the EU law as a catalyst to bring similar legislation in future.