The European Commission is reportedly getting ready to charge Apple for not following rules laid down by Digital Markets Act that require the iPhone maker to allow third-party software developers to “steer” consumers to offers outside the App Store, free of charge.
If found guilty, Apple faces potentially heavy fines.
Apple won’t let developer steer customers to their websites
The purpose of the European Union’s Digital Markets Act is to open up Big Tech to more competition. But Apple seems to be dragging its feet.
“The European Commission has determined that the iPhone maker is not complying with obligations to allow app developers to ‘steer’ users to offers outside its App Store without imposing fees on them,” according to the Financial Times.
The DMA went into effect in February, and in March the EC opened a noncompliance investigation into whether Apple is fully following the rules. Charging the company with not allowing iPhone app developers to steer customers to their websites would be the first result.
But it’s not a done deal. “Regulators have only made preliminary findings, and Apple could still take actions to correct its practices, which could then lead regulators to reassess any final decision,” said Financial Times.
It’s an accusation Cupertino must take seriously, as fines are potentially huge. “In the case the Commission finds an infringement of the DMA, it can impose fines of up to 10% of the company’s total worldwide turnover, or up to 20% in case of repeated infringement,” warns the EC.
Apple isn’t being singled out. The EU is also investigating Alphabet/Google and Meta/Facebook for not complying with provisions of the DMA.
Steering vs. non-steering
In much of the world, including the United States, third-party iPhone software developers are blocked from using their apps to suggest the customers visit their websites to buy services or extra features. Instead, they have to depend on in-app purchases that use Apple’s payment system.
Apple’s argument is that customers trust its payment system. But it also ensures that the iPhone-maker gets its cut of the revenue.
Thanks to the DMA, European iPhone app developers can steer customers toward their websites. In theory, anyway. But the EC has reportedly found that Apple is hindering this.
