European Union: Issued European Commission preliminary findings in investigation into Apple's rules on steering in the App Store compliance with Digital Markets Act

On 24 June 2024, the European Commission issued its preliminary findings on Apple's compliance with the Digital Markets Act (DMA) regarding the App Store's steering rules. The DMA mandates that app developers using Apple's App Store should be able to inform their customers about cheaper purchasing options, direct them to these alternatives, and facilitate purchases without incurring any charges. The Commission's preliminary assessment determined that none of Apple's three sets of business terms permit developers to steer their customers freely. For instance, developers are prohibited from providing pricing information within the app or communicating with customers about alternative offers available through different distribution channels. Most of these terms restrict steering to "link-outs", where developers can include a link in their app directing customers to a web page for concluding contracts. However, the Commission states that this link-out process is heavily restricted by Apple, limiting developers' ability to communicate, promote offers, and conclude contracts through their chosen channels. Moreover, Apple imposes fees that exceed what is necessary for facilitating the initial acquisition of new customers via the App Store. For example, Apple charges developers a fee for every digital good or service purchased by a user within seven days after a link-out from the app. The preliminary findings indicate that Apple may be in breach of the DMA. The preliminary findings are subject to further investigation, as Apple has the right to defend itself by examining the investigation documents and responding to the findings. If the Commission's preliminary views are confirmed, it would mean that none of Apple's current business terms comply with Article 5(4) of the DMA, which requires gatekeepers to allow developers to steer consumers to external offers free of charge. The Commission aims to adopt a non-compliance decision within 12 months from the start of the investigation on 25 March 2024.