Brussels signals first DMA penalties could center on Apple’s Core Technology Fee and steering rules

The European Commission’s first test of the Digital Markets Act is narrowing around Apple’s new App Store business terms in the European Union. At issue are Apple’s per install Core Technology Fee and remaining limits on how apps can steer users to outside payment options.

The Commission opened non compliance proceedings on March 25, 2024 against Apple under Articles 5 and 6 of the DMA. On June 24, 2024 it issued preliminary findings that Apple’s steering rules likely breach Article 5(4), which requires gatekeepers to allow developers to communicate and contract with users outside the platform on fair terms.

What the filings say

Apple’s “App Store Connect” Business Terms for the EU, published on January 24, 2024 and updated in March, introduced a 0.50 euro Core Technology Fee per first annual install once an app surpasses 1 million EU installs. The fee applies whether distribution uses Apple’s App Store or a third party marketplace if the developer opts into the new EU terms.

The same terms condition access to alternative app marketplaces and alternative browser engines on accepting the new fee regime. Apple’s documentation defines a first annual install at the user and device level and contemplates that subsequent years can trigger the fee again for the same user if the app remains active. Those mechanics sit alongside a revised steering policy that allows link outs but attaches disclosure and tracking requirements Apple controls.

The Commission’s preliminary findings cite these link out restrictions as non compliant with Article 5(4). The case file also reflects the March 2024 episode in which Apple terminated and then reinstated Epic Games’ EU developer account after the Commission requested information on Apple’s actions, underscoring Brussels’ focus on practical access to alternative distribution.

Why the stakes are high

Apple’s Services segment is a central profit driver. In its Form 10 K for fiscal 2023, Apple reported Services net sales of 85.2 billion dollars and disclosed that regulatory changes affecting the App Store could materially impact results. The DMA exposes that revenue to structural remedies and fines of up to 10 percent of global turnover for non compliance.

For developers, the fee design matters as much as steering. Companies like Spotify have told the Commission that a per install charge layered on top of payment processing and marketing costs would deter them from using alternative stores or link outs in practice. Smaller developers argue the 1 million threshold and annualized counting can sweep in free apps that cross a popularity line with no direct monetization.

Consumers are caught between promises of lower prices and the reality of added platform fees and compliance prompts. If the Commission orders changes, the remedies could reshape how EU users download apps, choose browsers, and pay for digital services.

What happens next

Under the DMA, the Commission can adopt a non compliance decision following its preliminary findings and impose fines or periodic penalty payments. It can also order behavioral remedies tailored to restore effective steering and alternative distribution.

Apple has signaled it will defend its terms and can challenge any decision before the General Court. Developers are preparing their own private damages strategies that would follow a Commission decision. The timing points to a decision window that sets precedent for other gatekeepers under parallel DMA probes into Google and Meta.