The EC has designated Apple as one of the six gatekeepers under the DMA. Credit: Stephen L/Unsplash.

The European Commission (EC) has delivered a preliminary assessment to Apple, suggesting that the US tech giant’s App Store policies may violate the European Union’s Digital Markets Act (DMA) by restricting app developers from directing consumers to alternative purchasing options.

Under the DMA, app developers should have the ability to inform and direct customers to more cost-effective purchasing avenues outside of the App Store without incurring costs.

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However, the commission’s initial findings indicate that Apple’s current business terms do not grant developers this freedom.

Apple is among six gatekeepers – the others being Alphabet, Amazon, ByteDance, Meta and Microsoft, designated by the EC under the DMA.

The EC has taken issue with Apple’s fee structure, which includes charges for digital goods or services purchased within seven days following a customer’s use of a link-out from the app. These fees are considered excessive.

Apple now has the opportunity to respond to the commission’s preliminary conclusions and defend its practices.

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Should the EC ultimately uphold its initial views, it would mean that none of Apple’s business terms align with Article 5(4) of the DMA.

A decision on non-compliance could be reached within 12 months from the commencement of the proceedings on 25 March 2024.

The commission has launched a third investigation into Apple’s new contractual terms for developers, which are required to access features made possible by the DMA.

The investigation will scrutinise whether these new terms, including the core technology fee and the process for downloading and installing alternative app stores or apps on iPhones and the eligibility criteria for developers, adhere to the DMA’s necessity and proportionality standards.

EC executive vice-president-in-charge for competition policy Margrethe Vestager said: “Today is a very important day for the effective enforcement of the DMA: we have sent preliminary findings to Apple.”

“We will investigate to ensure Apple does not undermine these efforts.”

Other aspects related to Apple’s validation processes for apps and alternative app stores intended for sideloading will continue to be investigated.