EU Commission accuses Apple App store of violating digital competition rules

5 months ago 13

The European Commission said Apple’s App Store is in breach of the bloc’s digital competition rules in preliminary findings announced in a press release, on Monday (24 June).

If the findings are confirmed, the Commission can declare Apple violating the Digital Markets Act (DMA) by March 25, 2025, one year after it started its investigation.

The EU executive also launched a new investigation into Apple over its new contract terms for third-party developers and app stores, including a “Core Technology Fee,” introduced in May. This requires third-party app developers and app stores to pay for using key Apple services.

This is the third DMA non-compliance investigation by the Commission into the iPhone producer by 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,” Apple told Euractiv.

The news comes just three days after the tech giant announced that it is halting the rollout of three new features in the EU, citing “regulatory uncertainties” caused by DMA.

The preliminary findings indicate that the App Store rules violate DMA by restricting application developers from informing customers about alternative purchasing options. Developers cannot freely provide pricing information or promote offers available on other channels, the Commission said.

Under the DMA, gatekeepers like Apple must allow app developers to direct users to external offers without fees.

Apple permits some redirection via link-out, which directs users to an external web page. But these link-outs are heavily restricted, said the press release.

This type of steering is “key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers,” said Commission Vice-President for Competition Margrethe Vestager.

The Commission also said that Apple charges excessive fees for purchases made within seven days of a link-out.

They added that Apple’s new contract terms are “a condition” for developers to access DMA-enabled features like alternative app stores and app distribution through other channels. The company still allows developers to choose older terms that do not include these options.

The Commission will investigate whether these new terms violate the “necessity and proportionality requirements” of the DMA. In particular it will look into the Core Technology Fee, which charges developers of third-party app stores and third-party apps €0.50 fee per installed app, the multi-step journey users must go through to install alternative app distribution channels, and the eligibility requirements for developers looking to offer such channels.