by Dan Moren
Preliminary ruling from the EC declares Apple is violating the DMA
The European Commission has issued a preliminary ruling in one of its DMA non-compliance investigations launched in March:
Today, the European Commission has informed Apple of its preliminary view that its App Store rules are in breach of the Digital Markets Act (DMA), as they prevent app developers from freely steering consumers to alternative channels for offers and content.
At the root of this decision is the EC’s contention that Apple is overly limiting the way developers are allowed to send potential customers to their own storefronts. That includes both the actual design restrictions of external links, as well as Apple’s fee structure (the company takes a cut of any digital good or service up to seven days after the customer follows the external link). Such moves would seem to be in violation of the DMA regulation that developers can advertise and direct users to their own sites without cost.1
Given that this is a preliminary ruling, Apple has time to respond to the finding before the final decision is put into effect in March of 2025.
Simultaneous to this decision, the EC has also announced a new non-compliance investigation, its third into Apple. This action specifically looks into Apple’s developer terms in the EU, including alternative app stores and distribution methods. At the heart of this matter are three issues: whether the process for users taking advantage of alternative app distribution is too onerous, whether Apple is too restrictive in its eligibility terms (such as the rule that developers must be “of good standing” to qualify), and the existence of the Core Technology Fee.
That is…a lot. Should the EC find Apple to not be in compliance in these areas, it would require a substantial reworking of much of Apple’s EU terms. As with the previous investigations, it will likely take some time for a final ruling to be issued, though we may get a preliminary ruling such as the one above in a matter of months.
Apple’s business in the EU continues to be a thorn in its side as both Europe and Apple hash out exactly what the implication of the far-reaching DMA is. Most recently, Apple said that several of its new features, including Apple Intelligence, would not come to the EU this year due to implications of the DMA, potentially taking this battle to a new level.
- For reference, the relevant portion of the DMA (Article 5(4)) reads in full: “The gatekeeper shall allow business users, free of charge, to communicate and promote offers, including under different conditions, to end users acquired via its core platform service or through other channels, and to conclude contracts with those end users, regardless of whether, for that purpose, they use the core platform services of the gatekeeper.” ↩