The EU isn’t happy with Apple’s tax on alternative app stores

The European Commission has just issued its first Digital Markets Act (DMA) fines to Apple and Meta, and now it’s telling Apple that it’s not impressed with the company’s approach to alternative app stores. The DMA originally forced Apple to begrudgingly allow alternative app stores on iOS in EU countries last year, but the fee structure imposed on developers and the daunting user installation process have led the European Commission to issue preliminary findings against Apple.

“Developers wanting to use alternative app distribution channels on iOS are disincentivized from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee),” says the European Commission. “Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels.”

Apple’s controversial Core Technology Fee (CTF) applies to developers who want to distribute their apps on third-party app marketplaces and use alternative payment options. Apple has been forcing developers to pay 50 euro cents for each annual app install after 1 million downloads, a pricey commission particularly for smaller developers. Apple did make more developers exempt from its alternative app store tax last year, allowing developers of free apps without monetization to avoid the fee.

While the CTF is an issue for the European Commission, the fiddly process of installing alternative app marketplaces and associated apps are also a concern for the Commission. “Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels,” says the European Commission in a statement. Apple has now been sent the Commission’s preliminary findings and will have time to respond to the findings before a final decision is made.

The European Commission has also closed its investigation into the iPhone’s browser choice screen today, ruling that changes Apple made to iOS satisfy its antitrust obligations. The probe into Apple’s default browser choice screen was launched in March 2024, and Apple introduced several changes in iOS 17.4 to comply with DMA requirements, including opening up its system to other browser engines besides its own WebKit engine, and directly prompting users to choose their own default browser.

The European Commission says a “constructive dialogue” with Apple has resulted in the ability for users in the EU to uninstall any apps, change default settings on iOS, and choose their default web browser from a choice screen.