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Apple\u2019s App Store \u201csteering\u201d policies violate the EU\u2019s Digital Markets Act meant to encourage competition, said regulators in\u00a0their preliminary ruling<\/a> Monday. The European Commission has also opened a new investigation into Apple\u2019s support for alternative iOS marketplaces in Europe, including the core technology fee it charges developers.<\/p>\n<\/div>\n \u201cOur preliminary position is that Apple does not fully allow steering,\u201d said Margrethe Vestager who heads up competition policy in Europe. \u201cSteering is key to ensure that app developers are less dependent on gatekeepers\u2019 app stores and for consumers to be aware of better offers.\u201d<\/p>\n<\/div>\n Under the DMA, Apple and other so-called gatekeepers must allow app developers to steer consumers to offers outside their app stores free of charge. Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft are the six gatekeepers who had to be fully compliant with rules as of March 2024.<\/p>\n<\/div>\n Apple is the first to be charged under the DMA rules after the EU\u2019s competition authority opened several investigations in March<\/a>. (Meta and Google are also being scrutinized for non-compliance.) Apple has time to respond to the European Commission\u2019s preliminary assessment ahead of its final ruling before March 2025. Apple could be fined up to 10 percent of its annual global revenue for infringement, or $38 billion based on last year\u2019s numbers. That increases to 20 percent for repeat infringements.<\/p>\n<\/div>\n The European Commission has also opened new proceedings into Apple\u2019s support for\u00a0alternative iOS app stores<\/a>. The investigation is focused on the contentious Core Technology Fee, the laborious multi-step process required for users to install the third-party marketplaces, and Apple\u2019s eligibility requirements for developers.<\/p>\n<\/div>\n \u201cWe have also opened proceedings against Apple in relation to its so-called core technology fee and various rules for allowing third party app stores and sideloading,\u201d said Vestager. \u201cThe developers\u2019 community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts.\u201d<\/p>\n<\/div>\n