Brussels has spoken again, and the message to Apple is clear: your App Store rules in Europe are still not compliant with the Digital Markets Act (DMA). The European Commission has published its complete 67-page ruling following a €500 million fine imposed on Apple in April. Apple now has until June 22 to fully align its App Store with the DMA's anti-steering provisions or face recurring financial penalties.
The core of the issue lies in Apple's anti-steering restrictions, which the Commission found continue to limit app developers' ability to inform users about alternative payment methods outside the App Store and facilitate transactions through external platforms. According to the ruling, these restrictions contravene Article 5(4) of the DMA, which requires designated gatekeepers like Apple to allow app developers to communicate freely with their users and offer competing payment systems without unfair conditions or excessive fees. The DMA came into force in November 2022 and became applicable to designated gatekeepers in 2023.
Apple had previously modified its business terms, allowing developers to add one external link per app to direct users to their own websites. These changes required developers to follow a standardized Apple-designed flow, including an interstitial warning screen before users are redirected. Additionally, Apple prohibited developers from pre-filling user-specific data, such as login credentials or purchase details, into the redirection URL.
However, the European Commission determined that Apple's implementation falls significantly short of the law's intent and legal requirements. Key findings in the ruling state that developers are still unable to promote alternative payment systems within their apps in a meaningful way. The structure imposed by Apple creates friction and discourages user redirection.
Specific non-compliant aspects highlighted by the Commission include:
Apple's current terms (both the "New Business Terms" and the "New Music Streaming Business Terms") restrict developers' ability to communicate and promote offers within the app and conclude contracts, contrary to the DMA's requirement that developers should be free to engage in "any form of communication and conclusion of contracts". Restrictions on the destination page after a link-out, such as limiting links to only one URL per app (five for music streaming apps) and prohibiting the use of web view, are incompatible with the DMA's requirement to allow steering to any channel or form of communication. The mandatory disclosure sheet displayed before redirection is not neutral or objective and may deter end users from using alternative channels, making steering unduly difficult. The recurrent nature of this sheet after every link-out is also seen as an unjustified restriction. Prohibiting developers from including additional data in the URL restricts their ability to promote offers and conclude contracts, making the process unduly difficult for end users who have to re-enter information. Apple's imposition of a 27% commission on any digital purchases made through external websites linked from within an app is seen as undermining the concept of allowing free steering. This fee is only slightly lower than the standard 30% in-app purchase commission.
The Commission explicitly rejected Apple's argument that it was only required to "allow" steering, not "facilitate" it. The ruling states that Apple's technical and procedural barriers effectively discouraged developers from directing users to external purchasing options, violating the law. It also criticized Apple's claim that its measures were designed to protect user security and privacy, finding that Apple had not put forward convincing arguments or shown these restrictions were objectively necessary and proportionate.
Crucially, the Commission clarified that the DMA's "free of charge" requirement in Article 5(4) applies not only to the communication and promotion of offers but also to the conclusion of contracts following steering, regardless of where the contracts are concluded. The Commission stated that Apple's 27% commission fee for steered transactions is incompatible with this requirement because it cannot be considered merely remuneration for facilitating the initial acquisition of the end user by the developer. The notion of "initial acquisition" implies compensation linked in time to the initial matchmaking and not a recurrent fee applied indefinitely or to already acquired users.
Apple has been given until June 22 to rectify these issues. Failure to comply will result in "periodic penalty payments," the amount of which would be determined based on the seriousness of the infringement and Apple's revenue. Apple must also pay the initial €500 million fine by July 23 or begin accruing interest.
In response to the full ruling, Apple reiterated its stance in a statement, describing the European Commission's actions as unjustified and detrimental to users' privacy and security. Apple claimed the decision forces them to give away technology for free and is bad for innovation, competition, products, and users. Apple stated it will appeal the decision and continue engaging with the Commission to advocate for its European customers.
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