Apple’s App Store Rules Illegally Stifle Competition In Europe—Possibly Drawing Billions In Fines, EU Regulator Says
What specific Apple App Store rules did the EU find problematic?
The EU found that Apple's App Store rules prevent app developers from steering users towards alternative channels, such as their websites, where they might offer better deals and offers1. The rules also restrict developers from freely directing customers to alternative payment methods or content outside of Apple's ecosystem.
What changes did Apple announce to its App Store in January?
In January, Apple announced changes to its App Store in response to the European Union's Digital Markets Act (DMA). The changes include allowing third-party app stores and app downloads, new options for processing payments via alternative methods, and introducing new frameworks and APIs for alternative browser engines1. These changes aim to increase competition and provide more options for developers and users while maintaining privacy and security standards.
How do Apple's App Store fees allegedly exceed necessary limits?
Apple's App Store fees allegedly exceed necessary limits by charging developers a 27% commission on certain in-app purchases, even when the purchase is completed on an external website. This high fee discourages developers from using external payment systems, offering little financial incentive compared to Apple's in-app purchase system. The European Commission has also criticized the fees charged by Apple for facilitating the initial acquisition of a new customer by developers, stating they go beyond what is strictly necessary for such remuneration5.