EU Commission VS Apple 

28 жовтня 2024 390 IT комiтет
Світлана Рудюк

WEB-3 and tax lawyer

I successfully finished the process of transferring the apps to the App Store and really was surprised by the App Store policy for the developers.

As you remember, the EU Commission investigated whether Apple's new contractual requirements for third-party app developers respond to the proportionality requirements provided in DMA. 

The process of installing apps on the App Store is very complicated.

Apple is trying to use its monopoly position to increase the cost of subscriptions.

For example, developers could not provide pricing information within the app or communicate in any other way with their customers to promote offers available on alternative distribution channels.

Under most of the business terms available to app developers, Apple allowed steering only through “link-outs”, i.e., app developers could include a link in their app that redirects the customer to a web page where the customer can conclude a contract. The link-out process was subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers, and concluding contracts through the distribution channel of their choice.

For example, Apple charged developers a fee for every purchase of digital goods or services a user makes within seven days after a link-out from the app - https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3433.

Background

Apple had to fully comply with all DMA obligations by 7 March 2024.

On 25 March 2024, the Commission opened non-compliance investigations of Apple's rules with respect to the DMA's obligations.

The Commission announced additional investigatory steps to gather facts and information in relation to Apple's alternative app distribution and new business model - https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3433.

The Commission mentioned that Apple was violating Article 5(4) of the DMA, which mandates that Apple must allow app developers to steer consumers to offers outside the AppStore, free of charge.

On August 8, 2024, Apple updated its rules for EU developers, who want to communicate discounts externally. 

Apple explicitly stated that these changes directly responded to the Commission’s view that Apple is not complying with the DMA. 

So, Apple confirmed that developers can promote offers available outside the Apple ecosystem now.

This change means that developers can list information about lower prices available outside of the Apple ecosystem now.

This is a great victory.