EU issues preliminary DMA charge against Apple, Apple files revised App Store plan to avert fines

The European Commission on Wednesday delivered a preliminary finding of non compliance to Apple under the Digital Markets Act, focusing on App Store steering limits and alternative distribution rules, and Apple filed a revised commitment package in Brussels seeking to address the concerns. The action raises the prospect of penalties of up to 10 percent of global turnover, and up to 20 percent for repeat infringement, with Apple’s 2023 revenue reported at 383.3 billion dollars.

The case matters because Apple’s EU program for third party app stores and direct web distribution, introduced in January 2024 and updated in June 2024, added a 0.50 euro Core Technology Fee per annual install above 1 million. Spotify, Epic Games, and other developers argued the fee and related constraints undermined DMA steering rights, and the Commission opened formal proceedings on March 25, 2024.

Regulator focus In a procedural update, the Commission said Apple’s design may not allow developers to communicate offers without Apple’s involvement or fees, and that some notarization and web distribution requirements could be disproportionate. The Commission cited earlier guidance that steering must be effective, which includes the ability to link to outside purchase options with reasonable conditions, referencing Article 5 of the DMA.

Apple’s proposed changes Apple submitted a revised plan that would remove the Core Technology Fee for small developers, introduce a cap for larger publishers, and relax restrictions on browser based app distribution, according to a person familiar with the filing. Apple has previously said its App Store terms include a 30 percent commission on digital goods, reduced to 15 percent for small businesses and subscriptions after one year, and that its changes aim to maintain security and privacy while complying with EU law.

Developers and rivals have pressed for broader relief. Spotify filed its original complaint in 2019, and Epic Games lodged an EU complaint in 2021, both alleging anti steering rules raised prices. Counterpoint Research estimates iOS accounted for roughly 32 percent of smartphone sales in Europe in 2023, which underscores the DMA’s potential consumer impact if fees and routing rules change.

The DMA names Apple, Alphabet, Amazon, Meta, Microsoft, and ByteDance as gatekeepers, and enforcement outcomes in this case will help set the baseline for app distribution economics, third party billing, and default choice architecture across mobile and other platforms. Investors and competitors will read any final remedies as a signal for how aggressive Brussels plans to be on fees and interoperability over the next enforcement cycle.