The EU’s Digital Markets Act (DMA) came into effect back in May of 2023 targeting big tech companies including Alphabet, Apple, Amazon, Google, Bytedance, Meta, and Microsoft. The EU Commission designated Apple as a gatekeeper under several core platform services including, operating systems (iOS and iPadOS), messaging platform (iMessage), and intermediation (App Store). The EU has now charged Apple with violating the DMA due to its anti-steering policies towards app developers.
AltStore PAL third-party iOS app store
As per the EU Commission’s press release, “Apple does not fully allow steering” which hinders developers from reaching iOS customers outside of the App Store. The EU is demanding Apple allow developers to steer consumers to alternative marketplaces outside the App Store without additional taxes.
We are concerned that Apple designed its new business model to discourage app developers and end users from taking advantage of the opportunities afforded to them by the DMA. The letter of the DMA is clear: gatekeepers have to allow for alternative app stores to establish themselves on their platforms; and for consumers to be fully informed about the offers available to them. So that they can freely choose where they want to source their apps, and at what conditions. – Margrethe Vestager (European Commissioner for Competition)
Apple opened up iOS and iPadOS to third party stores in the EU earlier this year but Cupertino still charges developers a core technology fee of €0.50 per download for apps that receive over 1 million downloads and an additional 3% fee for using Apple’s payment processor.
Apple has until March 2025 to comply with the DMA. Failure to do so will result in a 10% fine on Apple’s global revenue which would amount to $38 billion(€35.4B). Repeated violations will raise the fine to 20% of global revenues.
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