Publishers in Europe celebrate European Commission's initiative against Apple App Store for alleged violation of Digital Markets Act
The European Commission has taken action against Apple for failing to comply with the Digital Markets Act (DMA), a move aimed at promoting fairness and contestability in digital markets. The tech giant has been accused of frustrating greater competition in app distribution and payment solutions via a combination of friction and excessive fees.
In a strong statement to Apple, the Commission has indicated that this is just the beginning as they continue to look into Apple's terms and fees, with more rulings and fines likely to follow. The Commission finds Apple's fee structure, including the Core Technology Fee, unjustifiable.
Under the DMA, app developers should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers, and allow them to make purchases. Apple must now remove the technical and commercial restrictions currently in place in the App Store to ensure compliance with the DMA.
Publishers, including those represented by the European Publishers Council (EPC), welcome the European Commission's action against Apple. EPC's Executive Director, Angela Mills Wade, commends the Commission for addressing behaviors that undermine the free press and limit access to independent news and information.
Apple must change its practices within two months to comply with the DMA. This includes allowing developers to promote alternative purchasing options and pay new business fees, including an acquisition fee and a Core Technology Commission for apps using external purchase links. Subscriber data from App Store purchased subscriptions should belong to the publisher, not Apple.
Publishers should also be able to offer their customers alternative payment systems in the App Store. A significant change is that publishers can now offer promotions and deals in their own apps to subscribers, a feature previously prohibited by Apple. The commission on subscriptions in the App and Play Stores should drop to 3-5%.
The European Commission's ongoing work includes specific, straightforward, and fair asks to ensure compliance with the DMA. The EPC's website is https://www.epceurope.eu and LinkedIn page is https://www.linkedin.com/company/epceurope/.
This decision marks a significant step towards a more competitive and fair digital market in Europe. For more updates and information, follow the European Commission and the European Publishers Council.
Read also:
- Upcoming iPhone Model: What We Understand Thus Far
- Six-year peak of Enterovirus cases reported by the CDC
- Steak 'n Shake CEO's criticism of Cracker Barrel's leadership under fire, prompting retaliation from the latter following public outburst
- Confidential Data Protection in Medical Field: Defending Vital Patient Data
