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AMSTERDAM — Apple’s App Store rules breach EU tech rules because they prevent app developers from steering consumers to alternative offers, EU antitrust regulators said on Monday, a charge that could result in a hefty fine for the iPhone maker.

The European Commission, which also acts as the European Union’s antitrust and technology regulator, said it had sent its preliminary findings to Apple following an investigation launched in March.

The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and ensure a level playing field for smaller rivals. It has until March next year to issue a final decision.

EU antitrust chief Margrethe Vestager cited issues with Apple’s new terms.

“As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” she told a conference.

The Commission said under most of the business terms, Apple allows steering only through ‘link-outs’, meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract.

It also criticised the fees charged by Apple for facilitating via the App Store the initial acquisition of a new customer by developers, saying they went beyond what was strictly necessary for such remuneration.

Apple said it had made a number of changes in the past several months to comply with the DMA after getting feedback from developers and the Commission.

“We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the company said in an email.

The EU executive said it was also opening an investigation into the iPhone maker over its new contractual requirements for third-party app developers and app stores and whether these were necessary and proportionate.

DMA breaches can cost companies fines as much as 10% of their global annual turnover.
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Hong Kong — A suspected Chinese state-sponsored hacking group has stepped up its targeting of Taiwanese organizations, particularly those in sectors such as government, education, technology and diplomacy, according to cybersecurity intelligence company Recorded Future. 

In recent years, relations between China and Taiwan, a self-governed island across the Taiwan Strait that Beijing claims as its territory, have deteriorated. The cyberattacks by the group known as RedJulliett were observed between November 2023 and April 2024, during the lead up to Taiwan’s presidential elections in January and the subsequent change in administration. 

RedJuliett has targeted Taiwanese organizations in the past, but this is the first time that activity was seen at such a scale, a Recorded Future analyst said, speaking on condition of anonymity out of safety concerns. 

The report said RedJuliett attacked 24 organizations, including government agencies in places like Laos, Kenya and Rwanda, as well as Taiwan. 

It also hacked into websites of religious organizations in Hong Kong and South Korea, a U.S university and a Djiboutian university. The report did not identify the organizations. 

Recorded Future said RedJuliett accessed the servers of those places via a vulnerability in their SoftEther enterprise virtual private network, or VPN software, an open-source VPN that allows remote connections to an organization’s networks. 

RedJuliett has been observed attempting to break into systems of more than 70 Taiwanese organizations including three universities, an optoelectronics company and a facial recognition company that has contracts with the government. 

It was unclear if RedJuliett managed to break into those organizations: Recorded Future only said it observed the attempts to identify vulnerabilities in their networks. 

RedJuliett’s hacking patterns match those of Chinese state-sponsored groups, according to Recorded Future. 

It said that based on the geolocations of IP addresses, RedJulliett is likely based out of the city of Fuzhou, in China’s southern Fujian province, whose coast faces Taiwan. 

“Given the close geographical proximity between Fuzhou and Taiwan, Chinese intelligence services operating in Fuzhou are likely tasked with intelligence collection against Taiwanese targets,” the report said. 

“RedJuliett is likely targeting Taiwan to collect intelligence and support Beijing’s policy-making on cross-strait relations,” the Recorded Future report said.

Taiwan’s Ministry of Foreign Affairs did not immediately comment.

A Chinese Foreign Ministry spokesperson dismissed the allegations.

“I don’t know the specifics of what you mentioned, but I can tell you that it’s not the first time the company you mentioned has fabricated disinformation on so-called Chinese hacking operations. There is absolutely no professionalism or credibility to speak of in what the company does,” the spokesperson, Mao Ning, said.

Microsoft reported in August last year that RedJuliett, which Microsoft tracks under the name Flax Typhoon, was targeting Taiwanese organizations. 

China has in recent years stepped up military drills around Taiwan and imposed economic and diplomatic pressure on the island. 

Relations between Taiwan and Beijing worsened further after the election in January of Taiwan’s new president Lai Ching-te, who China has deemed a “separatist,” after he said in his inauguration speech that Taiwan and China were not subordinate to each other. Like his predecessor Tsai Ing-wen, Lai has said that there is no need to declare Taiwanese independence because it is already an independent sovereign state. 

Like many other countries including the U.S., China has been known to engage in cyberespionage. Earlier this year, the U.S. and Britain accused China of a sweeping cyberespionage campaign that allegedly hit millions of people. 

Beijing has consistently denied engaging in any form of state-sponsored hacking, instead saying that China itself is a major target of cyberattacks. 

According to Recorded Future, Chinese state-sponsored groups will likely continue to target Taiwanese government agencies, universities and critical technology companies via “public-facing” devices such as open-source VPN software, which provide limited visibility and logging capabilities. 

Companies and organizations can best protect themselves by prioritizing and patching vulnerabilities once they become known, Recorded Future’s threat intelligence analyst said.
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