The European Commission has announced that Apple’s App Store policies may violate the Digital Markets Act (DMA), launching a new investigation into the tech giant’s compliance. According to the Commission, Apple’s rules restrict app developers from directing consumers to alternative purchasing options.
The DMA mandates that developers using Apple’s App Store must be able to inform users about cheaper alternatives and facilitate purchases without additional charges. Complaints from companies like Spotify and Epic Games highlight that developers must use the App Store and pay a 30% commission on transactions, a policy mirrored in the Android Play Store.
The Commission’s preliminary findings indicate that Apple’s three business agreements with developers do not allow them to freely share pricing information or promote alternative channels. While Apple permits some steering through restricted ‘link-outs’, the fees charged for customer acquisition via the App Store are considered excessive.
Apple has been invited to respond to these findings in writing. If the Commission’s views are confirmed, Apple’s terms would be deemed non-compliant with Article 5(4) of the DMA, leading to a formal non-compliance decision within a year from March 25, 2024.
Additionally, the EU has initiated a separate investigation into Apple’s new contractual terms for third-party developers and the introduction of the Core Technology Fee. These terms are suspected of not meeting the DMA’s compliance standards.
Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasized the importance of allowing app developers to steer users to alternative offers. Commissioner Thierry Breton stressed that the DMA’s tools will be used to ensure compliance and open opportunities for innovation and consumers.
The DMA aims to address unfair competition practices by major US tech firms. If found non-compliant, companies like Apple, Google, and Facebook could face fines up to 10% of their global turnover, with potential increases for repeat offenses. These penalties could amount to significant financial repercussions for the implicated firms.
