EU Probes Apple’s Compliance with Digital Markets Act
The European Commission has issued a preliminary view that Apple’s App Store rules breach the Digital Markets Act (DMA). The Commission’s findings suggest that Apple’s restrictions prevent app developers from directing consumers to alternative channels for offers and content. This limitation is seen as non-compliant with Article 5(4) of the DMA, which mandates that gatekeepers allow developers to steer consumers to external offers without charge. Apple now has the opportunity to respond to these preliminary findings.
Additionally, the Commission has initiated a new non-compliance investigation into Apple’s latest contractual terms for third-party app developers. This includes the “Core Technology Fee” of €0.50 per installed app. The investigation will assess whether these terms align with the DMA’s requirements, particularly regarding necessity and proportionality. The Commission will also review Apple’s multi-step process for downloading alternative app stores and the eligibility criteria for developers.
The Commission’s actions are part of a broader effort to ensure compliance with the DMA among major tech companies designated as gatekeepers, including Alphabet, Amazon, Meta, and Microsoft. This follows the Commission’s designation of Apple as a gatekeeper for its iPadOS on April 29, 2024. The Commission aims to foster a fair digital market by reducing dependency on gatekeepers and enabling consumer access to better offers.
In case of confirmed infringements, the Commission can impose fines up to 10% of the gatekeeper’s total worldwide turnover, increasing to 20% for repeated violations. Additional remedies may include obliging the sale of business parts or banning the gatekeeper from acquiring related services. The Commission remains committed to enforcing the DMA to protect competition and innovation within the digital market.
Source: Press corner