Apple accused by EU of violating the Digital Markets Act

It seems that the already tense tensions between Apple and the European Union will become even more tense. In a preliminary ruling announced today, European Union officials ruled that Apple’s App Store “steering” policies violate the EU Digital Markets Act (DMA), which aims to promote competition. The European Commission has also launched a new investigation into Apple’s support of alternative iOS markets in Europe, including the basic technology fee it charges developers.

Margrethe Vestager, the EU’s competition commissioner, said: “Our initial view is that Apple did not fully allow the manipulation. Referral is crucial to ensuring that app developers are less dependent on large companies’ app stores and to ensure that consumers are aware of better offers.”

According to the Digital Markets Law; Apple and large “gatekeeper” companies are required to allow app developers to direct consumers to offerings outside of app stores for free. Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six major technology companies that meet the EU’s “watchdog” definition as of March 2024.

Apple was the first company to be charged under DMA rules after the EU’s competition authority launched various investigations in March. Meta and Google are also being investigated for incompatibility. Apple has time to respond to the European Commission’s preliminary assessment before the final decision will be announced in March 2025. The company could be fined up to 10 percent of its annual global revenue for the breach, or up to $38 billion based on last year’s figures. This rate rises to 20 percent for repeated violations.

European Commission launches another investigation into Apple

The European Commission has also initiated new proceedings regarding Apple’s support for alternative iOS app stores. The investigation focuses on the contentious Core Technology Fee, the cumbersome multi-step process required for users to install third-party marketplaces, and Apple’s compliance requirements for developers.

Regarding this issue, Vestager said: “We also filed a lawsuit against Apple regarding the so-called core technology fee and various rules that allow third-party app stores and sideloading. The developer community and consumers are eager to provide alternatives to the App Store. “We will investigate to ensure Apple does not undermine these efforts.”

The statement sent by Apple to The Verge site, signed by spokesman Peter Ajemian, is as follows: “Over the past few months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission. All developers doing business on the App Store in the EU have the opportunity to take advantage of the features we offer, including the ability to direct app users to the web to complete purchases at a highly competitive price. “We will continue to listen and engage with the European Commission, as we routinely do.”