The European Commission has launched its first formal investigation under the new Digital Markets Act (DMA), targeting Apple for its controversial App Store rules and developer fees. Announced on Monday, the probe will scrutinize whether the tech giant is unfairly blocking app developers from directing users to cheaper purchasing options outside of its ecosystem.
At the heart of the investigation are the DMA’s “anti-steering” provisions, which are designed to give consumers more choice and developers more freedom. The EU’s executive arm expressed concerns that Apple’s new business terms, implemented to comply with the act, may ultimately defeat its purpose. While Apple now technically allows developers to link to external websites, the Commission alleges that the associated fees and complex conditions still create significant barriers.
Specifically, regulators will examine Apple’s “Core Technology Fee,” a charge levied on developers for every app install, even if the app is distributed through alternative marketplaces. The Commission stated that these measures “fall short of ensuring effective compliance with Apple’s obligations under the DMA.”
This investigation marks a significant escalation in the EU’s effort to rein in the power of Big Tech. As a designated “gatekeeper” under the DMA, Apple faces severe penalties if found in breach of the rules, including fines of up to 10% of its global annual turnover. The outcome of this case could set a crucial precedent for how other major tech platforms, also under the DMA’s purview, must adapt their business models to foster a more competitive digital market in Europe. The Commission has given itself a 12-month deadline to conclude the investigation.
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