EC Says Apple Violated DMA; Apple to Hold EU AI Plans

The European Commission said that Apple breached Digital Markets Act (DMA) rules with its App Store policies. The EC thus opened a new investigation into the iPhone maker for another potential violation.

Preliminary findings of an investigation into the tech giant’s compliance with the DMA with regards to its App Store indicated Apple’s rules prevented developers from freely steering consumers to alternative channels for offers and content, the EC explained. Under the law, it highlighted, developers using Apple’s app distribution platform should be able to inform users of alternative purchasing options without charge and steer them to those offers.

In its initial view, none of Apple’s three sets of relevant business terms allowed developers to freely steer customers. Should the EC’s preliminary findings be confirmed a non-compliance decision will be made within 12 months of the start of the probe, which in this case was 25 March 2024.

European Commissioner for the Internal Market Thierry Breton said it had reason to believe that the App Store rules not allowing app developers to communicate freely with their own users is in breach of the DMA. “Without prejudice to Apple’s right of defense, we are determined to use the clear and effective DMA toolbox to finally open real opportunities for innovators and for consumers,” added Breton.

“The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts,” said EC EVP for competition policy Margrethe Vestager. “The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts.“

The maximum fine for infringing the DMA is 10% of worldwide turnover with the level of fine able to be increased for repeat offences. It also has the power to adopt additional remedies such as obliging companies to sell a business or parts of it for systematic non-compliance. At the same time as publishing the result of its App Store investigation, the EC announced it was opening a third non-compliance investigation against Apple over its new contractual terms for developers.

Concerning European regulation, Apple said it will withhold the release of new features such as its Apple Intelligence GenAI tools across the EU. In addition to Apple Intelligence, the tech giant will not release iPhone Mirroring and SharePlay Screen Sharing in the EU this year.