EU Regulators Launch Investigation into Apple’s Compliance with Digital Markets Act

On Monday, European Union (EU) regulators initiated a new investigation into Apple’s support for alternative iOS marketplaces in Europe under the Digital Markets Act (DMA). They indicated that the App Store’s “steering” policies are in violation of the DMA, which is designed to foster competition.

Margrethe Vestager, the head of competition policy in Europe, expressed concerns about Apple’s restrictive practices. “Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers,” she stated.

The EU regulators highlighted that Apple’s new business model complicates the ability of app developers to operate as alternative marketplaces and reach their end users on iOS. “We will look into Apple’s new business model – the commercial terms Apple imposes on app developers who want to reach end users on the iOS platform,” they announced.

Additionally, the regulators noted their first preliminary findings in a case of non-compliance, focusing on Apple. They emphasized that Apple’s new terms do not meet the DMA’s requirements regarding steering users to options outside the Apple App Store. “As they stand, we think that these new terms do not allow app developers to communicate freely with their end users, and to conclude contracts with them,” the regulators concluded.

This investigation underscores the EU’s commitment to ensuring fair competition and preventing monopolistic practices within the digital marketplace.