Apple is the first company to be prosecuted for violating EU DMA rules

In a provisional ruling on Monday, regulators said Apple's App Store practices violate EU digital market laws aimed at promoting competition. The European Commission also launched a new investigation into Apple's support for alternative iOS marketplaces in Europe, including the core technology fees it charges developers.

“Our tentative view is that Apple does not fully accept steering. Steering is key to making app developers less reliant on gatekeeper app stores and ensuring consumers are aware of better offers,” Margrethe Vestager, Europe's competition chief, said in a statement.

Under the DMA, Apple and other so-called gatekeepers must allow app developers to direct consumers to offers outside their own app stores for free. Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers that were required to be fully compliant with the rules as of March 2024.

“Over the past few months, Apple has made several changes to comply with the DMA in response to feedback from developers and the European Commission,” Apple spokesman Peter Ajemian said in a statement to The Verge. “All developers doing business with the App Store in the EU have the opportunity to take advantage of the features we've introduced, including the ability to direct app users to the web to complete their purchases at highly competitive prices. As we have done regularly in the past, we will continue to listen and respond to the European Commission's input.”

Apple is the first company to be charged under the DMA rules since EU competition authorities launched multiple investigations in March. (Meta and Google are also under scrutiny for non-compliance.) Apple has time to respond to the European Commission's preliminary assessment before a final ruling by March 2025. Apple could be fined up to 10% of its annual global revenue for violations, or $38 billion based on last year's figures. For repeat offenders, the fine increases to 20%.

The European Commission has also opened new proceedings into Apple's support for alternative iOS app stores, with the investigation focusing on the controversial core technology fees, the cumbersome multi-step process required for users to install third-party marketplaces, and Apple's qualification requirements for developers.

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

Apple on Friday claimed that the rollout of core iOS 18 features to European users was delayed this year due to regulatory uncertainty related to the DMA, blaming interoperability requirements that could undermine user privacy and data security.

Update June 24: Added Apple's statement on the anti-steering ruling.

Sources 1/ https://Google.com/ 2/ https://www.theverge.com/2024/6/24/24184629/apple-dma-steering-infringement-ruling The mention sources can contact us to remove/changing this article

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