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A couple of weeks ago, Apple announced the rules that developers must follow to make their apps available through third-party app stores and even through simple web downloads. However, these rules were very restrictive and the European Commission believes that they may not comply with the WFD.
The Commission “has initiated investigative measures related to Apple’s new fee structure for alternative app stores.” The Commission writes: “Apple’s new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web (download) may be defeating the purpose of its obligations under Article 6, paragraph 4 of the DMA.”
The fee structure refers to Apple’s proposal. “Basic technology fee”which will charge developers €0.50 for each first annual installation for apps that have received more than 1 million downloads from third-party app stores (this also includes downloading updates).
Obviously, this could be devastating for small developers who find that their app has skyrocketed in popularity: instead of celebrating, they would worry about how to pay Apple’s fee. And they may have to leave an old app without updates, as it would incur new fees.
Apple is not the only “gatekeeper” in trouble with the Commission, and “self-preference” is often the problem. For example, Alphabet is being investigated for promoting its services in search results (i.e. ranking Google Shopping, Google Flights, Google Hotels, etc.) above competing services from other companies. Additionally, Alphabet’s “steering rules” may prevent developers from sending users to offers outside of the company’s app store for free.
Amazon is also accused of self-preference: is Amazon pushing its own-brand products over competing alternatives? The Commission is investigating it.
Meta’s new “pay or consent” model has also not passed the test. Last year, Meta introduced ad-free paid tiers for Facebook and Instagram. “The Commission is concerned that the binary choice imposed by Meta’s ‘pay or consent’ model does not provide a real alternative in the event that users do not consent, thereby failing to achieve the objective of preventing the accumulation of personal data by the guardians.”
Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft are the six gatekeepers who were appointed in September 2023 and were required to fully comply with the DMA by March 7. The Commission granted a 6-month extension for Meta to finish its work on Facebook Messenger. , a work that will allow its users to chat with users of other apps.
Please note that these are preliminary investigations, the European Commission has not conclusively determined whether or not the gatekeepers comply with the WFD. But if the answer is “no,” then companies can be fined up to 10% of their annual global revenue (rising to 20% for repeat offenders).
