The regulator said in a preliminary ruling on Monday that Apple’s App Store “guidance” policy violated the European Union’s Digital Markets Act, which aims to encourage competition. The European Commission has also launched a new investigation into Apple’s support of alternative iOS markets in Europe, including core technology fees charged to developers.
“Our initial position is that Apple does not fully allow the pivot,” said Margrethe Vestager, head of European competition policy. “Guidance is key to ensuring that app developers are less reliant on gatekeeper app stores and that consumers are informed of better offers.”
Under the DMA, Apple and other so-called “gatekeepers” must allow app developers to direct consumers to products outside their App Stores for free. As of March 2024, Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers that must fully comply with the rules.
Apple is the first company to be charged under DMA rules since EU competition authorities launched multiple investigations in March. (Meta and Google have also come under scrutiny for violations.) Apple has time to respond to the European Commission’s preliminary assessment before a final ruling is due by March 2025. A global fine of 10% is imposed on the company during its annual period. For repeat infringers, this percentage will increase to 20%.
The European Commission has also launched a new process regarding Apple’s support for alternative iOS app stores. The investigation focuses on contentious core technology fees, the laborious multi-step process required for users to install third-party marketplaces, and Apple’s developer qualification requirements.
“We have also filed a lawsuit against Apple over its alleged core technology fees and various rules that allow third-party app stores and sideloading,” Vestager said. “The developer community and consumers are eager to provide the App Store with Alternatives. We will investigate to ensure Apple does not undermine these efforts.
On Friday, Apple blamed “regulatory uncertainty” related to DMA for delaying the rollout of basic iOS 18 features to European users this year. Apple has argued that interoperability requirements could harm user privacy and data security.
