The European Commission (EC), the regulatory body of the European Union (EU), has named Apple as the first company to be found in violation of the DMA (Digital Markets Act).
The issue revolves around Apple’s App Store rules, which the EC believes restrict app developers’ ability to inform users about alternative app stores.
Currently, app developers can only include links to websites within their apps, and not offer direct downloads from competing stores. This, according to the EC, hinders competition by making it difficult for developers to promote cheaper or more attractive options outside the Apple ecosystem.
Today, the European Commission announced that Apple’s rules for its App Store prevent developers from guiding consumers to alternative methods of getting iOS apps.
Under most of the business terms available to app developers, Apple allows steering only through “link-outs,” i.e., app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract. The link-out process is subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers, and concluding contracts through the distribution channel of their choice.
This is just the opening part of what could become a lengthy battle. Apple has the right to defend its App Store practices before the EC. If the preliminary findings are upheld, Apple could face fines reaching 10% of its global turnover – a massive financial penalty.
EC has also launched further investigations into other aspects of Apple’s iOS policies, including a fee Apple charges developers for apps downloaded from third-party stores and the company’s requirements for setting up such stores.
This is a big development for both Apple and the European tech landscape. If you don’t already know, the DMA aims to create a more open and competitive market for app distribution.