The European Commission has found that Apple is violating the Digital Markets Act (DMA). The DMA mandates that Apple allow developers to inform customers of alternative offers outside the App Store, direct them to those offers, and facilitate purchases through those channels without incurring any charges.
However, the Commission has concluded that Apple is contravening this legislation by imposing unlawful fees, employing scare tactics through warning screens, and placing restrictions on transactions conducted outside of the App Store. Furthermore, the European Commission has also released preliminary findings indicating that Apple’s limitations on alternative distribution methods, including the Core Technology Fee (CTF), are in breach of the DMA. The Commission accuses Apple of intentionally circumventing the DMA by rendering alternative store distribution impractical for developers and discouraging consumers with a convoluted and misleading installation process for third-party stores.
Consequently, the European Commission has imposed a fine of €500 million on Apple. In conjunction with the fine, the Commission has mandated that Apple eliminate all technical and commercial barriers to steering and refrain from engaging in any similar non-compliant practices in the future.
Specifically, Apple is required to enable apps downloaded from the App Store to guide customers toward third-party stores, abstain from levying any fees on purchases made outside of an app, remove all restrictions on the language, style, and flow that developers can use to link to their website or to access an alternative payment system, refrain from tracking, surveilling, or requiring developers to provide Apple with data about purchases consumers make outside apps, and permit developers to advertise lower prices and communicate directly with their customers.
Apple is obligated to adhere to the Commission's decisions within 60 days, with the threat of potential periodic penalty payments for non-compliance. The Commission will maintain its dialogue with Apple to ensure adherence to both its specific rulings and the broader requirements of the DMA.