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The European Commission has taken its first major enforcement steps under the Digital Markets Act (DMA)—and Apple’s Core Technology Fee is in the spotlight.
In a fresh wave of regulatory action, the Commission issued preliminary antitrust findings against Apple over what it sees as a deliberate effort to stifle competition in iOS app distribution. This comes just after both Apple and Meta received fines under the DMA, a sweeping regulatory framework aimed at curbing big tech dominance in Europe.
What’s the Issue? Apple’s Core Technology Fee (CTF)
Introduced alongside Apple’s grudging allowance of third-party app stores on iOS in the EU, the Core Technology Fee requires developers to pay €0.50 for every annual app install after one million downloads—a charge that applies even when apps are distributed via third-party marketplaces or use non-Apple payment systems.
The EU’s Position:
- The CTF discourages developers from distributing apps through alternative channels.
- Apple’s strict eligibility criteria restrict developer access to the third-party ecosystem.
- The user installation process for alternative app stores is unnecessarily complex and deters consumer adoption.
In short: the European Commission believes Apple is technically compliant but practically anti-competitive—a familiar accusation leveled at big tech under emerging global digital market regulations.
Developer Impact: Big Fees, Complex Rules
Small and mid-sized developers, in particular, are feeling the pressure. While Apple exempted non-monetized free apps from the CTF in a policy update last year, many developers say the fee still limits innovation and creates high upfront costs that only the largest players can absorb.
Meanwhile, the clunky and unintuitive process of installing and using alternative app stores has led the Commission to accuse Apple of deliberately degrading the user experience—making third-party channels “burdensome and confusing.”
On the Bright Side: Apple Cleared on Browser Probe
In a related development, the Commission closed its investigation into Apple’s browser choice screen, launched in March 2024. The decision follows changes introduced in iOS 17.4, including:
- Support for non-WebKit browser engines.
- A default browser choice prompt for EU users.
- The ability to uninstall any app and set third-party defaults.
The Commission called the changes a result of “constructive dialogue” and confirmed Apple now meets DMA compliance on that front.
What Happens Next?
Apple now has the chance to formally respond to the Commission’s findings before a final ruling. If the EU upholds its concerns, further fines or structural remedies could follow—including forced changes to Apple’s app distribution and fee model in Europe.
This marks a crucial test for the DMA’s enforcement power, especially against tech giants known for compliance by technicality.
Key Takeaways
- Apple’s Core Technology Fee under fire for discouraging competition.
- EU says Apple’s app installation process is “overly burdensome” for users.
- Developers face high fees after 1 million installs—even outside Apple’s App Store.
- Apple cleared in browser choice probe after iOS updates.
- Apple now has a chance to respond before potential penalties.
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