European Union regulators said Apple breached the EU's DMA rules for not allowing App Store customers to be directed to alternatives.
European Union competition regulators announced today that a new investigation has been opened against Apple. Regulatory bodies said Apple violated DMA rules because it did not allow App Store customers to be directed to alternatives. Within the scope of the investigation, if Apple is found guilty, a heavy fine awaits the technology giant. The European Commission, the EU's executive body, also announced that it has launched a new investigation into Apple's new contract terms with developers.
This charge against Apple is the EU's first under the Digital Markets Act (DMA). The Commission has until March 2025 to make its final decision. According to DMA rules, companies found guilty can be fined up to 10 per cent of their global annual turnover. During the investigation process, Apple can avoid penalties by providing the necessary appropriate and compliant conditions.
On the other hand, Apple said it has made a number of changes over the past few months to comply with the DMA after receiving feedback from app developers and the Commission. According to the EU regulator, Apple is preventing developers from freely directing consumers to alternative channels for more favourable offers and content in the App Store. According to the Commission, Apple allows developers to redirect users through a system where they can provide a link that sends users to a web page where they can purchase content, such as subscriptions. However, this link does not appear to be sufficient. Because Apple receives a high commission from purchases made through the link. He also said that the fees Apple charges developers for the initial acquisition of new customers through the App Store "go beyond what is absolutely necessary".
The Commission also announced that it has launched an investigation into Apple's new contractual requirements for third-party app developers and app stores, and whether they are necessary and proportionate. This investigation includes the charging of "core technology fees". Apple still charges a fee of $0.54 per app installed for downloads outside its own App Store. The Commission said it is investigating whether this is compatible with the DMA.
In addition, the Commission is also examining the "multi-stage user journey" involved in downloading and installing an alternative app store or app. The regulator considers the process here to be onerous for users.
