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The European Commission has revealed preliminary findings indicating that Apple’s current App Store rules violate the Digital Markets Act (DMA). The Commission asserts that third-party developers should be able to inform customers of alternative purchasing options without charge. Currently, developers can’t advertise different prices or distribution channels within their apps. Although Apple allows developers to link out to their websites, the Commission finds this mechanism too restrictive. Even when transactions are handled on external websites, developers must report sales to Apple and pay a commission, except for a 3% processing fee waiver. Apple claims its changes comply with the DMA, estimating that 99% of developers would pay the same or less under new terms. The Commission has also opened a third investigation into Apple’s Core Technology Fee (CTF) and alternative app marketplaces. Apple adjusted the CTF for non-commercial apps and provided a transition period for small developers, but the long-term implications remain. The EC will also examine the complex process required to install third-party app stores. Apple has one year to respond and negotiate terms to avoid potential fines.

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