Apple’s App Store policy violates the EU’s Digital Markets Act (DMA), which aims to promote competition, regulators said in a preliminary ruling on Monday. The European Commission has also launched a new investigation into Apple’s support for alternative iOS marketplaces in Europe, including the core technology fees it charges developers.
According to the DMA, Apple and other so-called gatekeepers must allow developers to direct consumers to offers outside their app stores for free. Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft are the six gatekeepers that had to be fully compliant with the new rules as of March 2024.
Apple became the first company to be charged under the DMA rules after the EU competition authority launched several investigations in March. Meta and Google are also being scrutinized for non-compliance.
At the same time, Apple disagrees with the EC’s preliminary findings and claims to be in compliance with the new EU requirements.
«Over the past few months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission,» said Apple spokesman Peter Ajemian. «All developers who do business in the EU on the App Store are able to use the features we’ve introduced, including the ability to direct app users to the web to make purchases at very competitive prices. As in the past, we will continue to listen to and work with the European Commission».
Apple has until March 2025 to respond to the European Commission’s preliminary assessment before its final decision. The company can be fined for violations of up to 10% of its annual global revenue, or $38 billion as of last year. For repeated violations, the fine increases to 20%.
The European Commission has also opened a new investigation into Apple’s support for alternative iOS app stores. The investigation focuses on the controversial fee for the underlying technology, the laborious multi-step process required for users to install third-party marketplaces, and Apple’s requirements for developers.
Source: The Verge