The EU has launched investigations into Apple and Google’s anti-steering policies, as well as a probe into Apple’s new rules on alternative app stores in the region.
The EU’s Digital Markets Act, which came into effect earlier this month, requires gatekeepers like Apple and Google to allow developers to steer consumers outside native app store payment systems free of charge. But the Commission said this morning that it suspects the measures put in place so far “fall short of effective compliance”.
The EU is also taking steps to clarify if Apple’s new fee structure and other terms and conditions for alternative app stores and app distribution from the web – AKA sideloading – “may be defeating the purpose of its obligations” under the DMA.
Gatekeepers could face “heavy fines” if they are found to be falling short of what the DMA requires. The EU Commission said it will conclude the investigation within 12 months, and if gatekeepers are found to be breaking the rules, they can be fined up to 10% of the company’s total worldwide turnover. It will fine them up to 20% for repeated infringement, it said.
“We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market,” said the EU’s commissioner for internal market Thierry Breton.
“But we are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses. Should our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines.”
The EU Commission’s EVP in charge of competition policy Margrethe Vestager added: “We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe.”
Last week, the US government hit Apple with a landmark lawsuit alleging that it maintains an illegal monopoly, blocks competition, thwarts innovation and more. And all that has followed Epic’s court battles with Apple and Google, which have been rumbling on ever since the Fortnite maker deliberately got its flagship game kicked off both app stores.
