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Apple Inc. was notified by the European Union that its geo-blocking practices are potentially in breach of consumer protection rules, adding to the iPhone maker's regulatory issues in the bloc.
Apple's App Store, iTunes Store and other media services unlawfully discriminate against European customers based on their place of residence, according to a European Commission statement on Tuesday.
The notification comes as Apple is facing the first-ever fine under the Digital Markets Act, or DMA, for failing to allow app developers to steer users to cheaper deals, Bloomberg News reported last week. That penalty is set to come months after the Cupertino, California-based company was hit with a €1.8 billion ($1.9 billion) fine for similar abuses under the bloc's traditional competition rules.
The geo-locating investigation was conducted together with a network of national consumer authorities and found Apple media services only allow users to use payment cards issued in the countries they registered their Apple accounts, according to the statement. The App Store also blocks users from downloading apps offered in other countries, the investigation found.
A spokesperson for Apple didn't immediately respond to a request for comment.
National regulators in the EU can issue fines for breaches of consumer protection law, and the bloc often works together with such bodies to flag problems.
Apple has one month to respond to the findings and propose remedies to address the geo-blocking practices, according to the statement.
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