The European Commission has alleged Apple is in breach of its Digital Markets Act (DMA), in that outlines anti-competitive behaviour in the consumer market. The Commission states a preliminary view that Apple’s App Store rules “prevent app developers from freely steering consumers to alternative channels for offers and content.” It has further alleged Apple is in non-compliance of the DMA through its contractual requirements and “Core Technology Fee” for third-party app developers and App Stores.
The issue, as presented by the European Commission, is that developers are not able to freely steer their customers, as Apple only allows steering through link-outs, and that Apple is allegedly charging fees “beyond what is strictly necessary.” Essentially, the EC alleges Apple is skirting DMA requirements by stifling competition, as well as over-charging developers. What is the Digital Markets Act? The Digital Markets Act was established in 2022, with a view to create a fairer market for all businesses, and to reduce monopoly powers in the digital marketplace.
Since its introduction, companies have been required to make internal changes to operate within the EU, and follow compliance rules to ensure their businesses practices are not anti-competitive. Per the European Commission, Apple has not done enough to comply with the DMA, and a set March 2024 deadline for change has now passed. It will give Apple a chance to defend its finding before judgement is handed down –.