EU launches investigation into Apple App Store infringements under DMA

The European Commission has officially declared that Apple's App Store policy violates the Digital Markets Act (DMA), especially in the part regulating anti-circumvention.

Here's What We Know

According to the DMA, developers who distribute their apps through Apple's App Store should be able to inform their customers about cheaper alternatives and allow them to make purchases free of charge. The Commission noted that Apple's terms with developers prevent this from happening.

Apple's customer management connectivity process is reportedly subject to restrictions that prevent app developers from communicating, promoting offers and entering into contracts through their chosen distribution channel.

In addition, the EU believes that the fees charged by Apple for attracting new customers through the App Store are excessive. For example, Apple charges developers a commission for each purchase of digital goods or services that a user makes within seven days of following a link from an app.

The Commission is also opening a new non-compliance procedure against Apple due to new contractual requirements for third-party app developers and app marketplaces, including a €0.50 core technology fee, which does not effectively enforce Apple's obligations under the DMA.

In response, Apple said it has made a number of changes to comply with the DMA. The corporation is confident that its plan complies with the law. They estimate that more than 99% of developers will pay the same or lower fees under the new business terms.

Now that the Commission has notified Apple of its preliminary findings, the company can defend itself, study the investigation documents, and respond in writing to the comments. If a violation of the DMA is proven, Apple faces a fine of up to 10% of its global revenue.

The final decision is expected by March 2025.

Source: European Commission