Apple’s App Store policies are under fire as the European Commission accuses the tech giant of breaching the EU’s Digital Markets Act (DMA). The preliminary findings allege that Apple’s rules hinder app developers from guiding consumers towards alternative content channels. Additionally, Apple faces a third non-compliance investigation concerning its App Store operations.
The DMA, which became effective earlier this year, mandates that developers using Apple’s App Store should have the freedom to inform customers about cheaper purchasing options, steer them to these alternatives, and enable purchases without any added costs. However, the Commission’s initial analysis indicates that Apple’s business terms restrict developers from directing their customers independently.
According to the DMA, Apple is permitted to charge a fee through the App Store for facilitating new customer acquisition by developers. Nonetheless, the Commission argues that Apple’s fees exceed what is necessary for such services. Margrethe Vestager, the Commission’s Executive Vice-President responsible for competition policy, emphasizes the importance of allowing steering to reduce developers’ reliance on app store gatekeepers and to ensure consumers are aware of better deals.
Apple now has the opportunity to review the Commission’s findings and respond in writing. If the Commission’s stance is upheld, it could issue a non-compliance verdict within 12 months from the start of the inquiry on 25 March. Additionally, a third non-compliance probe has been launched against Apple concerning new contractual obligations for third-party app developers and stores, including the controversial “Core Technology Fee.”
In response to the allegations, an Apple spokesperson expressed confidence in their plan to comply with the DMA rules. They highlighted changes made to align with regulations and stated that the majority of developers would face unchanged or reduced fees under the revised terms. Alongside Apple, the Commission has identified other tech giants as gatekeepers under the DMA, and investigations are ongoing into various practices that may violate competition rules, potentially resulting in fines up to 10% of the company’s total worldwide turnover for non-compliance.
SOURCE: Ref Image from Reuters
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