A video game maker has helped The European Union’s Digital Markets Act (DMA) claim its first major victory. Apple will now be required to allow sellers using its App Store to mention or link to alternative storefronts or other payment offers. Previously, Apple customers could only complete purchases through the App Store, where Apple takes a 30% cut.
Apple was also fined €500 million by the EU. Meanwhile, Meta was hit with a €200 million fine over its advertising policies. The commission is also investigating Elon Musk’s X for potential violations.
In early 2024, the EC ordered Apple to allow alternative app marketplaces on iOS devices. Apple complied but also charged developers a Core Technology Fee—even when apps were distributed outside the App Store. Apple imposed commissions of up to 17% on transactions that occurred off its platform.
What’s more, Apple implemented overly complicated user processes that confused users and undermined fair competition. Developers who used payment methods other than Apple’s in-app purchase system were forced to display “in-app disclosure screens,” also known as “scare screens,” which discouraged users from proceeding. Apple has been ordered to “remove the technical and commercial restrictions on steering” within 60 days or face further fines.
Epic to the Rescue
Leading the charge against Apple was Epic Games, the creator of the popular online game that has been in legal battles with the tech giant since 2020. Epic Games tried to bypass Apple’s payment directives by offering cheaper, direct payments through the Fortnite game itself, which led to the app being removed from Apple’s App Store and Google Play.
Fortnite returned to the App Store in Europe last year due to an EU law that requires Apple to allow third-party apps on its devices. However, the game is still unavailable on iPhones in other parts of the world.
Targeting the Gatekeepers
The DMA sets out rules for tech giants to make it easier for consumers to move between competing online services. It specifically takes aim at large platforms, like Google and Amazon, classifying them as “Gatekeepers” and thus subject to enhanced regulations.
X might be the next to feel its power. The European Commission has been investigating the service formerly known as Twitter since 2023, focusing on whether it has done enough to mitigate the spread of illegal content and assist users in flagging harmful content, among other concerns. The EC is reportedly in discussions with X over its findings.
The post Apple Loses Payments Battle with the EU; Is X Next? appeared first on PaymentsJournal.
