Apple Faces EU Investigation Over App Store Scam Applications

Apple Inc. is currently under investigation by the European Union (EU) regarding the presence of fraudulent applications within its App Store. This scrutiny challenges Apple’s longstanding assertion that its exclusive control over app distribution on iOS devices is essential for user security.

Background on App Store Controversies

Apple has consistently maintained that its stringent oversight of the App Store is crucial to safeguarding users from malicious software and scams. However, numerous reports have highlighted instances where deceptive applications have bypassed Apple’s review process. For example, a 2021 study revealed that nearly 2% of the top-grossing apps in the App Store were scams, undermining Apple’s security claims.

In response to regulatory pressures, Apple has made adjustments to its App Store policies. In January 2024, the company permitted game streaming services and third-party app stores on iOS devices within the EU, aligning with the Digital Markets Act (DMA). Despite these changes, concerns persist about the effectiveness of Apple’s measures to prevent fraudulent apps.

EU’s Investigation into Apple’s App Store Practices

The European Commission has initiated an investigation to determine whether Apple, along with other tech giants like Google and Microsoft, is adequately policing its platforms to protect consumers from financial fraud. EU tech chief Henna Virkkunen emphasized the importance of scrutinizing how these companies handle fake applications, particularly fraudulent banking apps, within their app stores.

This investigation is part of the EU’s broader effort to ensure that major technology companies comply with regulations designed to protect consumers from online scams and financial fraud. The Digital Markets Act, which came into effect in 2023, aims to prevent gatekeeper companies from engaging in anti-competitive practices and mandates that they take proactive steps to remove illegal content from their platforms.

Potential Consequences for Non-Compliance

Should the investigation reveal that Apple has failed to meet its obligations under the DMA, the company could face significant penalties. The EU has the authority to impose fines of up to 6% of a company’s annual global turnover for non-compliance. Given Apple’s substantial revenue, such fines could amount to billions of euros.

In addition to financial penalties, the EU may require Apple to implement more robust measures to detect and prevent fraudulent applications. This could include enhancing its app review processes, increasing transparency in its operations, and providing users with more tools to report suspicious apps.

Apple’s Response and Ongoing Challenges

Apple has previously taken steps to address concerns about fraudulent apps. In May 2025, the company reported that it had prevented over $9 billion in fraudulent transactions over the past five years, including more than $2 billion in 2024 alone. Apple also stated that it had rejected over 320,000 app submissions in 2024 for being spam, copycats, or misleading to users.

Despite these efforts, the presence of scam apps in the App Store continues to be a significant issue. Critics argue that Apple’s current measures are insufficient and that the company must do more to protect consumers. The ongoing EU investigation will likely intensify the pressure on Apple to enhance its app review processes and ensure that its platform remains a safe environment for users.

Broader Implications for the Tech Industry

The EU’s scrutiny of Apple’s App Store practices is part of a larger trend of increased regulatory oversight of major technology companies. In recent years, the EU has taken action against several tech giants for various violations, including imposing a €500 million fine on Apple in April 2025 for restricting app developers from directing users to cheaper alternatives outside its App Store. Meta Platforms was also fined €200 million for forcing users to choose between personalized ads or a paid ad-free experience, infringing on their right to freely consent to data usage.

These actions reflect the EU’s commitment to enforcing the Digital Markets Act and ensuring that gatekeeper companies do not engage in anti-competitive practices. The ongoing investigation into Apple’s App Store practices serves as a reminder to all tech companies of the importance of compliance with regulatory standards and the need to prioritize consumer protection.

Conclusion

Apple’s current legal scrutiny by the EU over the presence of scam apps in its App Store underscores the challenges the company faces in maintaining a secure platform for its users. As the investigation progresses, Apple will need to demonstrate that it is taking effective measures to detect and prevent fraudulent applications. The outcome of this investigation could have significant implications not only for Apple but also for the broader tech industry, as regulators continue to hold companies accountable for their role in protecting consumers from online fraud.