European Union: Announced European Commission investigation into Apple's contract terms compliance with Digital Markets Act

On 24 June 2024, the European Commission opened a third non-compliance investigation into Apple's contractual terms for developers as a condition for accessing features enabled by the Digital Markets Act (DMA). The features include the provision of alternative app stores and the possibility of offering apps via alternative distribution channels. Apple has allowed developers the option to adhere to previous conditions, which do not permit alternative distribution channels at all. The Commission's investigation will assess whether these new contractual requirements for third-party app developers and app stores violate Article 6(4) of the DMA, focusing on the necessity and proportionality of these requirements. Specifically, the investigation will examine Apple's Core Technology Fee, which requires developers of third-party app stores and apps to pay EUR 0.50 per installed app. The Commission will determine whether Apple has justified this fee structure under the new business terms and whether it complies with the DMA. The investigation will also focus on the steps required for users to download and install alternative app stores or apps on iPhones, evaluating the various information screens displayed by Apple to users to ensure they comply with the DMA. Additionally, the Commission will investigate the requirements developers must meet to offer alternative app stores or directly distribute apps from the web on iPhones.