In a landmark decision for app developers across the EU, issued on 23 April 2025, the European Commission ("EC") has reinforced developers' rights to communicate directly with users and distribute their apps outside of dominant platforms, in what is one of its first two non-compliance decisions under the EU's Digital Markets Act ("DMA").
The EC imposed a fine totalling €500 million on Apple for failing to meet its obligations as a designated gatekeeper under the DMA.
Under the DMA, gatekeepers are large digital platforms designated by the EC according to defined thresholds. In addition to Apple, six other companies have been designated as gatekeepers to date: Alphabet, Amazon, ByteDance, Microsoft, Meta, and Booking.
This enforcement action underscores the EC's determination to protect app developers' rights and promote fair competition in the digital marketplace. Article 5(4) of the DMA requires gatekeepers to allow app developers to communicate and promote their offers to end users acquired through the gatekeeper's platform, without incurring any charges. This includes granting developers the right to "steer" users towards alternative channels where purchases can be completed or services accessed under different conditions. These steering obligations are designed to give developers more freedom to interact with their users outside the gatekeeper's platform. In practical terms, this empowers developers to build more direct relationships with their users, potentially reducing reliance on dominant platforms and avoiding high commissions or restrictive terms.
According to the EC, Apple has failed to comply with its obligations by maintaining both technical and commercial restrictions that prevented developers from fully exercising their steering rights. Developers were not allowed to provide pricing information within their apps, nor could they communicate more favourable offers outside the App Store to users, except through limited "link-out" functionality, which required users to leave the app and visit an external website. These link-outs were also heavily restricted, further preventing developers from effectively utilising alternative distribution channels. Additionally, Apple imposed fees on transactions made through these alternative distribution channels, which the EC deemed unnecessary and disproportionate. As a result, app developers could not fully benefit from alternative distribution methods, and consumers were unable to access potentially better offers.
In response to these violations, the EC has ordered Apple to remove the technical and commercial restrictions immediately and to cease such practices going forward. The enforcement decision is significant not only for Apple but also for the broader digital marketplace. It reinforces the DMA's aim of promoting fair competition and reducing the power imbalance between dominant platforms and smaller market participants. Going forward, developers will have a clearer legal basis to communicate directly with their users, steer them to better deals, and distribute their apps more freely.
For developers, this ruling represents an opportunity to rethink how they engage with users and distribute their products. The DMA encourages multi-homing, allowing users to access similar services across different platforms. This development is likely to enhance developer visibility, reduce customer acquisition costs, and promote innovation by removing many of the traditional barriers imposed by gatekeepers.
Businesses affected by the DMA—whether app developers or other stakeholders—should ensure they understand their rights and obligations under this evolving regulatory framework.
The full text of the EC's decision was published on the 26 May 2025.
You may find an overview of the rights afforded to app developers under the DMA in our earlier article on "How the EU's Digital Markets Act is Shaping a Fairer Future for App Developers."
Co-authored by Adriana Brincat (Consultant) and Carmen Pennanen (Trainee).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
