EU’s DMA Rules Find Apple’s App Store Violates Regulations on Alternative Purchasing Possibilities

EU’s Digital Market Act (DMA) rules state that Apple’s App Store must allow developers to direct customers to alternative purchasing options without charge. However, the European Commission’s investigation has found that Apple’s App Store rules violate these requirements, preventing developers from freely steering consumers to other channels.

Under the DMA rules, developers should be able to inform customers about alternative, cheaper purchasing possibilities, guide them towards these offers, and facilitate purchases at no extra cost. The Commission has determined that Apple’s current business terms do not allow developers to freely steer their customers. For example, Apple prohibits developers from providing pricing information within the app and restricts communication with customers to promote offers available through other sales channels.

Apple claims that it has made changes over the past few months to comply with DMA regulations after considering feedback from the Commission and developers. The company states that developers on the App Store in the EU can now utilize new capabilities, including directing app users to complete purchases on the web at competitive rates. Apple emphasizes its commitment to listening and engaging with the European Commission.

The Commission’s preliminary position is that Apple does not fully allow steering, which is crucial for app developers to be less dependent on gatekeepers’ app stores and for consumers to be aware of better offers. Margrethe Vestager, executive vice president in charge of the EU’s competition policy, highlights the importance of steering in reducing dependence on gatekeepers and promoting consumer awareness.

According to the DMA definition, online gatekeepers are businesses with a large user base, operating in multiple EU countries, economically significant, and having a considerable impact on the market. In September 2023, Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft were designated as gatekeepers. These companies had until March 7 to fully comply with DMA rules.

If the Commission determines that there has been an infringement, it can impose fines of up to 10% of Apple’s global turnover. In cases of repeated infringements, fines can increase to 20%. Additionally, if there are systemic infringements, other measures such as forcing the company to sell parts of its business may be taken. Apple has received the Commission’s preliminary findings and has the opportunity to defend itself by submitting a written response.

The Commission launched anti-competitive investigations against Apple, Alphabet, and Meta on March 25 for potential breaches of DMA rules. Prior to this, in March, the Commission fined Apple over 1.8 billion euros for engaging in unfair trading practices that limited iOS users’ choices. The investigation found that Apple banned music streaming app developers from fully informing users about alternative and cheaper music subscription services outside of the app. These practices resulted in customers paying significantly higher prices for their subscriptions.

Apple criticized the EU judgment at the time, claiming that there was no credible evidence of consumer harm and that the market is competitive and thriving. However, the Commission believed that the fine was necessary due to non-monetary harm caused by Apple’s actions.

Apple has not yet responded to The Epoch Times’ request for comment on these recent developments.