The European Commission has found that Apple is violating the Digital Markets Act (DMA) with its rules and fees in the App Store that prevent app developers from steering users to other sales channels. The commission stated that developers must have the freedom to inform customers of alternative purchasing options, but Apple’s business terms restrict this.
Apple has been accused of charging excessive fees by the commission. While Apple justifies these fees as necessary for facilitating the initial acquisition of a new customer, the commission believes that the fees charged go beyond what is strictly necessary. For example, Apple charges developers a fee for every purchase made by a user within seven days after being redirected from the app to a website.
Apple has responded by stating that it has made changes to comply with the DMA and will continue to engage with regulators. The company believes that more than 99 percent of developers would pay the same or less in fees under the new business terms introduced by Apple. Apple also mentioned that developers in the EU have the option to direct app users to the web to complete purchases at a competitive rate.
In addition to the violation of the DMA, the commission has started a separate investigation into Apple’s contractual requirements for third-party app developers and app stores. This investigation includes Apple’s “Core Technology Fee” charged for app installs, eligibility requirements for developers offering alternative app stores or distributing apps from the web, and the multi-step user journey to download and install alternative app stores or apps on iPhones.
The commission is also looking into Apple’s requirement for developers to have “membership of good standing” in the Apple Developer Program to benefit from alternative distribution methods, as well as the checks and reviews put in place by Apple to validate apps and alternative app stores before they can be sideloaded.
Apple’s delay in introducing its Apple Intelligence AI tools and other features in the EU due to regulatory uncertainties brought about by the Digital Markets Act has also been noted. The investigation is ongoing, and Apple is yet to provide a response to these allegations.
Overall, the European Commission is taking a firm stance against Apple’s practices in the App Store and is closely examining its compliance with the Digital Markets Act to ensure fair competition and consumer choice in the digital market.
