The European Union has opened a non-compliance investigation into Apple and other major tech companies under the Digital Markets Act (DMA). The probe will focus on iPhone maker’s rules on steering in the App Store and the choice screen for its default web browser, Safari.
The commission is concerned that Apple is making it hard for app developers to tell users about offers outside the App Store. Not just that, but the commission will also investigate if Apple is making it difficult for iPhone users to remove apps, change default settings, or choose different default apps like browsers or search engines.
The EU said in a statement, “The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.
“The Commission is concerned that Alphabet’s and Apple’s measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers’ ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges,” the statement reads further.
In addition to the steering rules, the Commission is also investigating Apple’s compliance with user choice obligations under the DMA. This includes assessing whether Apple enables end users to easily uninstall software applications on iOS, change default settings, and select alternative default services through choice screens.
“The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones,” the commission said in the statement.
Another issue is Apple’s new fees and rules for other app stores and downloading apps directly from the internet. The EU wants to make sure these are fair and don’t go against the DMA.
Further, the commission is investigating the screen choice for the default browser. “The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.’
The DMA, which came into effect earlier this month, aims to rein in the market power of big tech companies and ensure fair competition in the digital marketplace. Under Article 5(4) of the DMA, gatekeepers like Apple are required to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.
The European Commission has classified iOS, App Store, and Safari as Apple’s gatekeeper’s services.
Ahead of the deadline, Apple implemented several major changes to the way the App Store and apps operate in the EU to comply with the DMA. These changes are included in iOS 17.4 but are generally limited to countries within the European Union. However, the changes come under scrutiny, as several companies and developers have complained the commission of Apple’s changes, terming them “unfair.”
Non-compliance investigations have also been opened against Alphabet, Amazon, Microsoft and Meta.
In cases of infringement, the Commission can impose fines of up to 10% of a company’s total worldwide turnover, with the possibility of increasing the fine to 20% in case of repeated infringement. The Commission also has the power to adopt additional remedies, such as obliging a gatekeeper to sell a business or parts of it, or banning the company from acquisitions of additional services related to the non-compliance.
European Union intends to conclude the proceedings within 12 months.
The commission is concerned that Apple is making it hard for app developers to tell users about offers outside the App Store. Not just that, but the commission will also investigate if Apple is making it difficult for iPhone users to remove apps, change default settings, or choose different default apps like browsers or search engines.
The EU said in a statement, “The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.
“The Commission is concerned that Alphabet’s and Apple’s measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers’ ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges,” the statement reads further.
In addition to the steering rules, the Commission is also investigating Apple’s compliance with user choice obligations under the DMA. This includes assessing whether Apple enables end users to easily uninstall software applications on iOS, change default settings, and select alternative default services through choice screens.
“The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones,” the commission said in the statement.
Another issue is Apple’s new fees and rules for other app stores and downloading apps directly from the internet. The EU wants to make sure these are fair and don’t go against the DMA.
Further, the commission is investigating the screen choice for the default browser. “The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.’
The DMA, which came into effect earlier this month, aims to rein in the market power of big tech companies and ensure fair competition in the digital marketplace. Under Article 5(4) of the DMA, gatekeepers like Apple are required to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.
The European Commission has classified iOS, App Store, and Safari as Apple’s gatekeeper’s services.
Ahead of the deadline, Apple implemented several major changes to the way the App Store and apps operate in the EU to comply with the DMA. These changes are included in iOS 17.4 but are generally limited to countries within the European Union. However, the changes come under scrutiny, as several companies and developers have complained the commission of Apple’s changes, terming them “unfair.”
Non-compliance investigations have also been opened against Alphabet, Amazon, Microsoft and Meta.
In cases of infringement, the Commission can impose fines of up to 10% of a company’s total worldwide turnover, with the possibility of increasing the fine to 20% in case of repeated infringement. The Commission also has the power to adopt additional remedies, such as obliging a gatekeeper to sell a business or parts of it, or banning the company from acquisitions of additional services related to the non-compliance.
European Union intends to conclude the proceedings within 12 months.