The EU is launching a new investigation into Apple’s policy towards third-party app stores. The European Commission is wondering whether the current rules are too restrictive for developers.

The European Commission is investigating the rules and practices Apple imposes on third-party app stores. This marks the EU’s third investigation into Apple under the Digital Markets Act (DMA). The first, concerning governance rules, resulted in a formal charge today. The second, concerning browser choice, is still ongoing.

Three complaints

In this third study, the EU is focusing on the implementation of the DMA rules on alternative app stores. According to the DMA, Apple, in its role as gatekeeper, must allow alternatives to its own app store. In the preliminary investigation, the Commission will examine whether the conditions imposed by Apple for these alternative ways of offering apps are necessary and proportionate. Specifically, the research focuses on three questions:

• Apple’s core technology feeAfter that, developers of app stores and third-party apps will have to pay a fee of €0.50 per app installed. The Commission will investigate whether Apple has demonstrated that the fee structure it introduced under the new terms and conditions, and in particular the Core Technology Fee, is actually compatible with the DMA.
• It Apple’s multi-step user journey to download and install alternative app stores or apps on iPhones. The Commission will investigate whether the steps a user must take to successfully complete the download and installation of alternative app stores or apps, as well as the various information screens that Apple displays to the user, are compatible with the DMA.
• The Eligibility requirements for developers regarding the possibility of offering alternative app stores or distributing apps directly from the web to iPhones. The Commission will examine whether these requirements, such as full membership of the Apple Developer Program, which app developers must meet in order to benefit from the alternative distribution provided for in the DMA, are compatible with the DMA.

Proportional

With the DMA, the EU wants to limit the power of tech giants like Apple and, above all, create a more open ecosystem with more competition. Apple, for its part, has to abide by these rules, but says it wants to keep the iPhone in a safe place. The company claims that restrictions are necessary for this. The EU is not deaf to this claim, but will now examine the proportionality.

“The developer community and consumers are eager to see alternatives to the App Store,” said Competition Commissioner Margrethe Vestager. “We will investigate to ensure that Apple does not undermine these efforts.”