Apple is making a mockery of DMA
The company modifies its practices in Europe… but still doesn’t comply with the law
Tim Sweeney had warned that “only massive fines” could push Apple to comply with the Digital Markets Act (DMA). History seems to be proving the Epic Games CEO right. In response to an ultimatum from Brussels, Apple did announce new rules last week for mobile applications, notably a new commission structure for external purchases.
But it still does not comply with this European regulation, which aims to promote fair competition in the digital space. The Commission has ordered Apple to stop charging any fees on such transactions. However, neither the fine it has already received nor the threat of daily penalties has caused Apple to back down, as it maintains a hardline stance against a law its executives have been fiercely criticizing for months.
Enacted last year, the DMA prohibits the so-called “anti-steering” practice, which Apple has enforced since the launch of the App Store. This practice forbade developers from redirecting users to an external website for purchases or subscriptions, effectively forcing all transactions through Apple’s payment system. This led to commissions of 15% to 30%.
“Initial acquisition”
On paper, Apple has backed away from this practice. But according to the European Commission, it has imposed “technical and commercial restrictions.” Most importantly, Apple has not given up its fees, introducing a complex new system with charges of up to 25% on transactions made within twelve months of an app’s installation or update.
For the EU, these commissions not only “go beyond what is strictly necessary,” as stated a year ago, but they outright violate the DMA. In a decision published in early June, the Commission ordered Apple to put an end to these practices. The company is only allowed to charge a small percentage for the “initial acquisition” of a customer, and only on the first transaction. For all others, “Apple is not allowed to impose any other type of fees.”
At the same time, the EU ordered Apple to lift all restrictions on external links within apps. This includes, for example, no longer limiting redirections to a single URL owned by the developer or forbidding the display of external pricing to highlight potential savings.
Daily penalties ahead?
Apple had until last Thursday to comply with these demands. The company has made no secret of its frustration, lamenting that “the Commission keeps changing the compliance criteria.” In response to the ultimatum, it chose to comply with the second requirement, but not with the fee structure. Instead of eliminating the charges, it introduced an even more complex system.
This system includes three types of commissions, one of which applies to all purchases made within six months as part of the “initial acquisition” fee. Overall, the rate varies from 10% to 20% depending on the developer’s size. To access the lowest rate, developers must also give up certain App Store “services” such as automatic updates or the ability to respond to user reviews.
In short, Apple is not complying with European directives. The Commission says it is reviewing the changes and reminds that it holds “broad regulatory powers if Apple continues to violate its obligations.” In practical terms, it could impose daily penalties of up to 5% of Apple’s daily turnover—roughly €45 million. In April, EU officials had promised to use such measures if necessary.
Leniency from Brussels ?
These penalties won’t be immediate, though. And the threat does not appear to scare Apple, which likely doesn’t expect maximum severity from Brussels — not only because the initial fine was relatively modest (€500 million), but also because the EU may wish to avoid straining diplomatic ties amid ongoing trade talks with the Trump administration.
Apple seems to believe it has more to lose by complying with the DMA. Without fees on external purchases, many developers might abandon its payment system entirely. The financial consequences would be enormous, as these commissions are nearly 100% profit margin.
Apple is also betting on a favorable outcome in a European court appeal — a process that could take years. Its executives are disputing the Commission’s interpretation of a DMA article, focusing on the meaning of a single comma. They also argue semantics: the fees aren’t “commissions” on transactions but rather compensation for the “significant value of services provided to developers” — compensation which, they claim, the DMA cannot regulate.