The European Commission has formally released its comprehensive verdict regarding Apple’s App Store operations within the European Union, conveying a straightforward message: the company’s newly introduced “DMA-compliant” terms continue to fall short of compliance.
### Rectify it or face penalties
After its initial €500 million penalty imposed in April, the European Commission is providing Apple with a 30-day timeframe to fully adjust its App Store regulations in accordance with the Digital Markets Act (DMA). Should it fail to meet these requirements, the EU warns that it will begin enforcing “periodic penalty payments” until Apple complies:
“In light of the seriousness of Apple’s non-compliance with Article 5(4) of Regulation (EU) 2022/1925, as determined in this Decision and considering that the non-compliance has been found to be ongoing, the Commission concludes that it is essential to impose periodic penalty payments in accordance with Article 31(1), point (h), of Regulation (EU) 2022/1925 if Apple were to neglect implementing measures that effectively terminate the infringement within 60 calendar days from the notification date of this Decision.
Any periodic penalty payments that may be definitively established should be adequate to ensure Apple’s compliance with this Decision and may account for Apple’s considerable financial capabilities.”
And
“If the recipient of this Decision fails to adhere to Article 3 within 60 calendar days from the notification date of this Decision, it shall incur periodic penalty payments not exceeding the limit outlined in Article 31(1) of Regulation (EU) 2022/1925, from the date on which it is required to effectively end the non-compliance pursuant to Article 3, until the date on which it complies with the Decision.”
Central to the matter is Apple’s strategy regarding anti-steering regulations, which prohibit app developers from informing users that they can pay for services outside the App Store ecosystem. According to the DMA, gatekeepers like Apple must permit developers to notify users about alternative payment methods, endorse these options within their applications, and process transactions—at no cost.
Apple did implement some adjustments earlier this year. However, the latest ruling states that those modifications are inadequate in nearly every aspect.
### ‘Apple has not presented any persuasive arguments’
The Commission assessed Apple’s original App Store conditions, its new business terms initiated in March, and a distinct version for music streaming applications. In every instance, it determined that Apple remains non-compliant:
“It follows from the above that Apple has not presented any persuasive arguments challenging the serious nature of the non-compliance.”
Under Apple’s newly proposed regulations, developers may include one external link per app directing to their own website. However, they must adopt Apple’s format, cannot embed pre-filled user data in the URL, and must display a disclaimer sheet prior to the link actually opening. Additionally, Apple applies a 27% commission on these transactions, compared to the 30% it collects for in-app purchases.
Apple contended that the DMA does not obligate it to “technically enable” or “facilitate” steering, but merely to “allow” it. The Commission dismissed that interpretation, asserting that Apple’s restrictions, fees, and technical barriers “undermine the effectiveness” of the law.
