The European Commission has preliminarily determined that Apple’s App Store practices may violate the Digital Markets Act (DMA). Specifically, the Commission’s findings suggest Apple is hindering app developers from steering consumers to alternative channels for offers and content, which could adversely affect competition and consumer choice.
On June 24, the Commission informed Apple of these preliminary findings. They accuse Apple of implementing restrictive business terms that prevent developers from providing pricing information within their apps or communicating with customers about offers available on alternative platforms. Additionally, while Apple allows “link-outs” (redirects from the app to a web page for concluding contracts), these are subject to several restrictions, limiting developers’ ability to communicate offers effectively.
The Commission’s third finding involves the fees Apple charges developers for purchases made within seven days after a link-out, which the Commission argues go beyond what is necessary for remuneration.
The current phase is one of preliminary findings; however, should the Commission conclude that Apple has indeed breached the DMA, it could adopt a non-compliance decision within twelve months of opening the proceedings. Potential repercussions for Apple include a fine up to 10 percent of its global annual turnover. This comes in addition to a recent €1.8 billion fine imposed on Apple by the Commission for abuse of its dominant market position. More information can be found on the European Commission’s official site.
Ongoing investigations by the Commission also cover Apple’s contractual terms with developers relating to the App Store’s Core Technology Fee, the user journey for downloading alternative app stores or apps on iPhones, and the eligibility requirements for developers. These investigations are part of the broader scrutiny under the DMA to ensure fairness in the digital market.
Further details are available in the report by JURIST.