European Commission: Apple’s ‘Core Technology Fee’ and other hurdles are illegal under the DMA
The fines weren’t the only Digital Markets Act news coming from this fine continent today. The European Commission also closed its investigation into Apple’s user choice obligations under the DMA, and while Apple has made good progress in a few areas, the EC states Apple is still acting illegally in a variety of others.
First, the good news for Apple: the European Commission is happy with Apple’s changes regarding browser choice, the ability to remove preinstalled iOS applications, and the ability to change a whole bunch of default settings that are all locked outside of the EU. These are valuable and welcome changes, and I’m glad the European Union, the European Parliament, and the Commission have forced Apple to become less hostile to European consumers.
Second, there’s the bad news for Apple. Under the DMA, Apple is obligated to allow for third-party application stores, and the ability for users to download and install applications directly from the internet. In this area, Apple is still breaking European Union law.
The Commission takes the preliminary view that Apple failed to comply with this obligation in view of the conditions it imposes on app (and app store) developers. Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee). Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.
↫ European Commission press release
This outcome was entirely expected, and pretty much everyone – except Apple’s PR attack dogs – knew Apple’s malicious compliance, fees, and onerous hurdles were going to be a hard sell. I’m glad the European Commission seems unimpressed with Trump’s sabre-rattling about the EU’s consumer protection laws, and is continuing to whip US tech companies in line, making sure they stop violating our consumer protection laws.
Since these are the outcomes of a preliminary investigation, Apple now has the chance to argue its case.