Apple is the first company accused of violating EU DMA rules

Apple’s App Store “steering” policies violate the EU’s Digital Markets Act, which is designed to encourage competition, regulators said in a statement. its preliminary ruling Monday. The European Commission has also opened a new investigation into Apple’s support for alternative iOS markets in Europe, including the core technology fee it charges developers.

“Our preliminary position is that Apple does not fully enable steering,” said Margrethe Vestager, who leads competition policy in Europe. “The guidance is critical to ensuring that app developers are less dependent on gatekeeper app stores and that consumers are aware of the best deals.”

Under the DMA, Apple and other so-called gatekeepers must allow app developers to direct consumers to offers outside of their app stores for free. Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers that should be in full compliance with the rules by March 2024.

Apple is the first to be charged under DMA rules after the EU competition authority opened several investigations in March. (Meta and Google are also being scrutinized for non-compliance.) Apple has time to respond to the European Commission’s preliminary assessment before its final decision before March 2025. Apple could be fined up to 10% of its annual global revenue per breach, or $38 billion based on last year’s figures. This increases to 20% for repeat offences.

The European Commission has also opened new proceedings over Apple’s support for alternative iOS app stores. The investigation is focused on the controversial Core Technology Fee, the laborious multi-step process required for users to install third-party marketplaces, and Apple’s eligibility requirements for developers.

“We have also filed lawsuits against Apple regarding the so-called core technology fee and various rules for allowing third-party app stores and sideloading,” Vestager said. “The developer community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts.”

On Friday, Apple blamed “regulatory uncertainties” related to DMA for delaying the rollout of core iOS 18 features to European users this year. Apple blamed interoperability requirements that could harm user privacy and data security.