After the launch of the investigation in March 2024, on June 24, 2024, the European Commission notified Apple of its preliminary findings, that Apple’s App Store rules are in breach of the provisions of the Digital Markets Act (DMA) of the European Union. With the current rules, developers of applications are prevented from freely steering consumers to alternative channels of offers and content outside of the App Store.
According to the provisions of the DMA, developers that distribute their apps via Apple’s App Store, should be able, free of charge, to inform their customers of alternative cheaper purchasing possibilities, steer them to those offers and allow them to make purchases.
When it comes to the regulations of relations between Apple and app developers, the European Commission found that neither of the terms and rules let the developers to freely steer their customers. According to the Commission, developers cannot, within the App Store, provide information regarding the prices, nor can they provide offers for alternative channels of distribution for their applications.
The only way that Apple allows steering of customers is through “link-outs”, that developers can include in their apps and that redirect customers to certain websites where customers can conclude contracts. However, according to the Commission, even these “link-outs” are subject to several restrictions set by Apple in relation to the communication, offers promotion and contract conclusion.
Furthermore, Apple stipulates additional charges which according to the Commission go beyond what is strictly necessary, in a sense that developers are obliged to pay fees for every purchase of digital goods or services that the customers make within seven days after a link-out from the app.
Responding to these findings, Apple has stated that several measures have been undertaken in the prior months to ensure that their terms and rules comply with the DMA and to also ensure the security of its customers.
In any case, if these preliminary finding are confirmed, it would establish that the rules of Apple’s App Store are contrary to the DMA.
Additionally, the European Commission has launched another investigation into Apple, also relating to breaches of the DMA, related to the possibility of having alternative app stores and the possibility to offer apps via alternative distribution channels.
Subject to the investigation is mainly, the fee of €0,50 that developers of third-party app-stores and third-party apps are required to pay to Apple, the relatively complex procedure that users have to go through in order to download and install alternative app-stores and applications, as well as the the eligibility requirements for developers related to the ability to offer alternative app stores or directly distribute apps from the web on iPhones.
The fact that investigations have been launched and some breaches have been detected resulted in the delay of launch of several of Apple’s newest products in the European Union, mainly Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing which is a cause for major disappointment of Apple users within the European Union.