Apple Found to Have Violated EU's Digital Markets Act

Following a thorough investigation initiated in March, the European Commission has determined that Apple is in violation of the Digital Markets Act. The preliminary findings indicate that Apple's rules hinder app developers from directing consumers to alternative channels for purchasing offers and content. The Commission discovered that Apple's terms of service restrict developers from freely communicating with consumers to promote alternative app stores. Although Apple permits developers to include links to external web pages within their apps, numerous restrictions apply, including a core technology fee that charges developers €0.50 for each app installation per year after the initial installation via the App Store or alternative marketplaces. In response to Apple's business terms, the EU regulator has initiated a non-compliance investigation, which may result in daily fines of up to 5% of Apple's average annual revenue, potentially exceeding $1 billion. According to the regulator, the Digital Markets Act entitles developers to inform their customers about alternative, more affordable purchasing options without incurring charges, and to facilitate purchases from those alternative sources.