EU Commission Says Apple is Breaking DMA Rules

Apple’s steering rules for the App Store are not compliant with the EU’s Digital Markets Act, the European Commission announced today in the preliminary findings of its investigation that started in March. Additionally, the EU regulator announced that it’s opening an additional non-compliance investigation into Apple’s Core Technology Fee (CTF) that developers need to pay for distributing their apps outside of the App Store.

In its preliminary findings on Apple’s steering rules for the App Store, the EU Commission explained that Apple doesn’t allow third-party developers to freely inform customers about cheaper purchasing possibilities available through other channels. “For example, developers cannot provide pricing information within the app or communicate in any other way with their customers to promote offers available on alternative distribution channels,” the EU regulator explained.

While the EU Commission also opened DMA non-compliance investigations into Google’s steering rules on the Play Store, self-preferencing on Google Search, and Meta’s ad-free subscription in the EU, Apple is the first big tech company facing a massive fine (up to 10% of the company’s total worldwide turnover) if the EU regulator’s preliminary views are confirmed. However, Apple can reply to these preliminary findings before the Commission’s final ruling. The company will also be able to appeal that decision.

“Throughout the past several months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission,” Apple spokesperson Peter Ajemian said in a statement sent to The Verge. “All developers doing business in the EU on the App Store have the opportunity to utilize the capabilities that we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive rate. As we have done routinely, we will continue to listen and engage with the European Commission.”

Regarding the Commission’s second investigation into Apple’s new business terms for iOS apps in the EU, the regulator will be focusing on three aspects: Apple’s 0.50€ Core Technology Fee per install once an app meets a certain download threshold, the multi-step process for installing alternative app stores on iOS, as well as the eligibility requirements for developers interested in alternative app distribution methods.

The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts,” said Margrethe Vestager, Executive Vice-President in charge of competition policy.