European Union regulators accused Apple of breaching the Digital Markets Act (DMA) for restricting App Store customers from accessing alternative options. The European Commission highlighted that Apple’s fees for developers acquiring new customers exceed necessary limits and launched a new probe into Apple’s compliance with the DMA regarding third-party app stores and web-based app downloads.
How Are Apple’s App Store Rules Violating the DMA?
The European Commission stated that Apple’s App Store rules prevent app developers from directing consumers to other channels for offers and content. This restriction contravenes the DMA, which mandates that tech firms must allow businesses to inform users about cheaper alternatives or subscriptions outside the app store.
Currently, Apple allows developers to include a link within their apps that directs users to a webpage for purchases. However, this process is heavily regulated by Apple, limiting developers’ ability to promote offers and complete transactions freely.
Apple Defends Its Practices
Apple argued that its current practices align with the DMA. “We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” Apple stated. They emphasized that all developers can direct users to web-based purchases at competitive rates.
The commission warned that if Apple is found to be in breach of the DMA, it could face fines up to 10% of its total annual worldwide revenue. In a related investigation in March, Apple was fined 1.8 billion euros ($1.93 billion) for allegedly abusing its market dominance in music streaming app distribution.
New EU Probe into Apple’s Compliance
The EU’s new probe will examine Apple’s recent changes to its App Store policies, including the introduction of third-party app stores and web-based app downloads. Concerns remain over Apple’s 50 euro cent ($0.54) “core technology fee” for external app downloads and the steps required for installing alternative app stores or apps.
The commission will assess whether Apple’s eligibility criteria for offering alternative app stores or direct app distribution from the web on iPhones adhere to the DMA’s requirements.
Related News:
Featured Image courtesy of FRANCOIS WALSCHAERTS, JOEL SAGET/AFP via Getty Images