Apple Accused of Violating EU DMA, Commission Opened Investigation Over Steering

Apple is officially being accused of violating the Digital Markets Act (DMA). The European Commission has opened up an investigation regarding Apple’s App Store and its steering policies.

Following the introduction of the DMA, Apple is required to support alternative iOS marketplaces in Europe. This policy requires Apple and other major tech companies to “steer” consumers to offers outside their walled gardens and app stores with no additional charges. The European Commission believes Apple violates this particular policy.

“Our preliminary position is that Apple does not fully allow steering,” said Margrethe Vestager, Executive Vice-President in charge of competition policy, in a press release. “Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers. We have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading.”

The European Commission accuses Apple of failing to properly street customers. It’s believed that 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.” The Commission is also investigating whether Apple has demonstrated its €0.50 per installed app fee for third-party app stores and third-party apps complies with the DMA.

“We have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading,” Vestager says. “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.

Apple is the first major tech giant to be charged under the DMA. The EU’s competition authority opened several investigations against Apple in March. The Cupertino company now has to respond and address these concerns by March 2025. If Apple is found to violate the European Commission’s preliminary assessment, the company could be fined up to 10 percent of its annual global revenue or $38 billion (based on 2023’s revenue). This increases to 20 percent for repeat offenders.