European Commission Accuses Apple of Breaching Digital Markets Act

The European Commission has informed Apple of its preliminary view that the company’s App Store rules are in breach of the Digital Markets Act (DMA). The Commission alleges that Apple’s rules prevent app developers from freely steering consumers to alternative channels for offers and content.

In addition, the Commission has opened a new non-compliance procedure against Apple over concerns that its new contractual requirements for third-party app developers and app stores, including Apple’s new “Core Technology Fee”, fall short of ensuring effective compliance with Apple’s obligations under the DMA.

The Commission’s preliminary findings suggest that none of Apple’s three sets of business terms allow developers to freely steer their customers. 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.

While Apple can receive a fee for facilitating via the AppStore the initial acquisition of a new customer by developers, the fees charged by Apple go beyond what is strictly necessary for such remuneration. For example, Apple charges developers a fee for every purchase of digital goods or services a user makes within seven days after a link-out from the app.

This development could have significant implications for Apple, as it brings into question the company’s compliance with the DMA. If the Commission’s preliminary views were to be ultimately confirmed, none of Apple’s three sets of business terms would comply with Article 5 (4) of the DMA, which requires gatekeepers to allow app developers to steer consumers to offers outside the gatekeepers’ app stores, free of charge.

Read more: ec.europa.eu