The European Commission has intensified its scrutiny of Apple’s App Store practices, citing potential violations of the Digital Markets Act (DMA). In a significant move, the Commission has informed Apple of its preliminary view that the company’s App Store rules breach the DMA by preventing app developers from freely steering consumers to alternative channels for offers and content.
The Commission believes that Apple unduly restricts developers from informing customers about cheaper purchasing options outside of the App Store. The preliminary findings suggest that none of Apple’s current business terms allow developers to freely steer their customers to alternative platforms. Even when steering is permitted through “link-outs,” the process is subject to various restrictions that hinder developers’ ability to promote offers and conclude contracts through their preferred distribution channels.
Furthermore, the Commission has opened a new non-compliance procedure against Apple, focusing on the company’s new contractual requirements for third-party app developers and app stores. Of particular concern is Apple’s newly introduced “Core Technology Fee,” which charges developers €0.50 per installed app. The Commission will investigate whether this fee structure, along with other new terms, complies with the DMA’s necessity and proportionality requirements.
The investigation will also examine Apple’s multi-step user journey for downloading alternative app stores or apps on iPhones, as well as the eligibility requirements for developers to offer alternative app stores or directly distribute apps from the web.
These actions underscore the European Union’s commitment to enforcing the DMA, which aims to ensure fair competition in digital markets. If the preliminary views are confirmed, Apple could face significant fines of up to 10% of its total worldwide turnover, with the potential for even higher penalties for repeated infringements.
For a full reading of the media release, see here.
