Apple is the first company accused of violating the European Union’s DMA rules

Regulators said Apple’s App Store “directive” policies violate the European Union’s digital markets law, which aims to encourage competition. Their initial ruling Monday. The European Commission has also opened a new investigation into Apple’s support for alternative iOS markets in Europe, including the underlying technology fees it charges developers.

“Our initial position is that Apple does not fully allow the directive,” said Margrethe Vestager, who heads competition policy in Europe. “Guidance is key to ensuring that app developers are less reliant on gatekeeper app stores and that consumers are aware of better offerings.”

Under the DMA, Apple and other so-called gatekeepers must allow app developers to direct consumers to offers outside their app stores for free. Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers that must fully comply with the rules from March 2024.

Apple is the first company to be charged under DMA rules after the European Union’s competition authority opened several investigations in March. (Meta and Google are also under scrutiny for non-compliance.) Apple has time to respond to the European Commission’s initial assessment before it issues its final ruling before March 2025. Apple could be fined up to 10 percent of its annual global revenue for the violation, or $38 billion based on last year’s numbers. This increases to 20 percent in the event of repeated violations.

The European Commission also opened new procedures on Apple’s support for alternative iOS app stores. The investigation focuses on controversial core technology fees, the arduous multi-step process required of users to install third-party markets, and Apple’s eligibility requirements for developers.

“We have also opened proceedings against Apple regarding so-called core technology fees and various rules for allowing third-party app stores and sideloading,” Vestager said. “The developer community and consumers are eager to offer alternatives to the App Store. We will investigate to make sure Apple does not undermine these efforts.”

On Friday, Apple blamed “regulatory uncertainties” related to the DMA for delaying the rollout of key iOS 18 features to European users this year. Apple blamed interoperability requirements that could undermine user privacy and data security.