EU finds Apple's app store policies in breach of Digital Markets Act

Brussels, Belgium

European Commission said Monday (June 24) that Apple's App Store rules violate the EU's landmark Digital Markets Act (DMA).

The Commission's preliminary findings indicate that Apple is restricting app developers from freely communicating with customers and directing them to alternative purchasing options outside the App Store.

The DMA, which came into effect in March 2024, is vying to limit the power of large tech platforms and ensure a level playing field for smaller businesses.

A key provision of the law prohibits so-called "gatekeepers" like Apple from preventing app developers from informing users about more cost-effective alternatives or subscription options beyond the app store.

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However, the Commission's investigation found that Apple's current policies do not fully allow such "steering" by developers.

"Our preliminary position is that Apple does not fully allow steering," said Margrethe Vestager, the EU's Executive Vice-President in charge of competition policy.

"Steering is key to ensure that app developers are less dependent on gatekeepers' app stores and for consumers to be aware of better offers."

The Commission also argued that the fees Apple charges developers for acquiring new customers through the App Store go "beyond what is strictly necessary" under the DMA.

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EU has also opened a separate investigation into Apple's new contractual requirements for third-party app developers and app stores, including a "Core Technology Fee" that developers must pay.

Apple could face fines

Apple now has the opportunity to respond to the Commission's preliminary conclusions. If the EU's concerns are ultimately confirmed, Apple could face fines of up to 10 per cent of its global annual turnover for breaching the DMA.

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The tech giant has maintained that it has already made changes to comply with the new EU rules, stating that "more than 99 per cent of developers would pay the same or less in fees to Apple under the new business terms we created."

This latest development marks an escalation in the EU's efforts to rein in the power of Big Tech platforms.

With the Digital Markets Act now in force, regulators are demonstrating their willingness to take on even the largest and most influential companies to ensure a more competitive and consumer-friendly digital space.

(With inputs from agencies)