The European Commission has accused tech giant Apple of being in breach of its Digital Markets Act (DMA), a law to make the “digital sector fairer and more contestable.”

The Commission has informed Apple of its preliminary view that its App Store rules don’t comply with the DMA, as they prevent app developers from freely steering customers to alternative channels for offers and content.

Under the DMA, developers distributing apps via Apple’s App Store should be able to, free of charge, inform their customers of alternative cheaper purchasing possibilities, steer them to those, and allow them to make purchases.

The Commission, which is the executive body of the European Union, said that Apple currently has three sets of business terms governing its relationship with app developers, including the App Store’s steering rules.

According to the Commission, it has preliminary found that: none of these business terms allow developers to freely steer their customers; Apple allows steering only through “link-outs,” e.g. include a redirecting link in their app where the customer can conclude a contract, but the link-out process is subject to several restrictions; and that whilst Apple can receive a fee for facilitating the initial acquisition of a new customer by developers via the App Store, the fees charged go beyond what’s strictly necessary.

Apple now has the possibility to exercise its rights of defence by examining the documents in the Commission’s investigation file, and replying in writing.

If the Commission’s preliminary views were to be confirmed, none of Apple’s three sets of business terms would comply with the DMA’s rules.

Following confirmation of its preliminary views, the Commission would then adopt a non-compliance decision within 12 months from the opening of proceedings on 25 March 2024.

In case of an infringement, the Commission can impose fines up to 10% of the company in question’s total worldwide turnover.

In addition to today’s preliminary view, the Commission has also opened a new non-compliance procedure against Apple.

This is over concerns that its new contractual requirements for third-party app developers and app stores, including Apple’s new “Core Technology Fee,” fall short of ensuring effective compliance with Apple’s obligations under the DMA.

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Margrethe Vestager, executive vice-president in charge of competition policy, commented: “Today is a very important day for the effective enforcement of the DMA: we have sent preliminary findings to Apple.

“Our preliminary position is that Apple does not fully allow steering. Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers.

“We have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading. The developers’ community and consumers are eager to offer alternatives to the App Store.

“We will investigate to ensure Apple does not undermine these efforts.”