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Apple is once again under EU scrutiny after two civil rights groups — Article 19 and the Society for Civil Rights — filed a complaint with the European Commission, alleging that Apple’s App Store and iOS policies violate the bloc’s Digital Markets Act (DMA). The filing argues that Apple’s terms unfairly restrict competition and prevent small businesses from effectively operating within its ecosystem.

The 16-page complaint criticizes Apple’s requirement for developers to provide a €1 million stand-by letter of credit (SBLC) to list or distribute apps, calling it a prohibitive and recurring cost for smaller firms. It also targets Apple’s restrictions on installing third-party app stores and software on iOS and iPadOS.

Apple has dismissed the claims as “false,” saying the EU’s imposed rules are “confusing for developers and bad for users.” The European Commission, which enforces the DMA, confirmed it is examining the issue and gathering feedback from market participants. Penalties under the DMA can reach up to 10% of a company’s annual global revenue.