The European Commission has preliminarily determined that Apple’s App Store rules and fees are in violation of the Digital Markets Act (DMA). These rules allegedly restrict app developers from steering users to alternative sales channels, which the commission announced today.
This finding initiates a formal process, allowing Apple to examine the investigation file and respond in writing before the commission makes a final ruling by March 2025. The potential penalties include fines up to 10% of Apple’s total global turnover, or even 20% for repeat violations. In cases of systematic non-compliance, the commission may compel Apple to divest parts of its business or restrict future acquisitions.
As outlined in the DMA, developers should be able to inform customers about cheaper purchasing options and direct them to those offers. However, the commission found that Apple’s terms prevent developers from doing this, including barring them from sharing pricing information or promoting alternative buying channels. While Apple allows in-app links to websites, it places several restrictions on this “link-out process,” impeding developers’ ability to communicate and finalize sales outside the App Store.
The commission further accused Apple of charging excessive fees. Apple is permitted to charge for facilitating initial customer acquisitions via the App Store, but the commission found these fees exceed what is necessary, such as levying charges on digital goods purchased within seven days after a user clicks a link-out.
In response, Apple stated it has made several adjustments to comply with the DMA based on feedback from developers and the European Commission. Apple remains confident that its new business terms adhere to the law, estimating that over 99% of developers would pay the same or lower fees under the adjusted terms. More details on Apple’s fee structure can be found here.
Additionally, the European Commission has launched a separate probe into Apple’s “Core Technology Fee” and its terms for third-party app developers and app stores. This investigation will assess whether these fees comply with the DMA and scrutinize Apple’s requirements and verification processes for alternative app distribution.
For full details, you can read the original report at Ars Technica.