European Commission vs Apple: Alternative Stores and Sales Channels for iOS Receive Support
The European Commission, as part of its regulation of gatekeepers such as Apple, has identified violations of Regulation (EU) 2022/1925 (Digital Markets Act or DMA), specifically regarding technical and commercial restrictions on alternative app stores and sales channels. Apple is required to take measures to eliminate these violations within 60 days - the company has already stated that it disagrees with the decision and plans to appeal it.
What Happened
In recent years, the influence of large online platforms on the EU digital economy, especially in e-commerce and digital sectors, has prompted active intervention from European regulators, leading to the adoption of legislative acts, including the Digital Markets Act (DMA). One of the key requirements for Apple stemming from the DMA is the obligation to allow distribution of applications on its iOS operating system through channels other than just the Apple App Store. From a practical perspective, this means that Apple must allow third-party app stores on iOS and permit applications to be downloaded to iPhones directly from the Internet. Additionally, Apple had to allow users in the EU to easily uninstall any applications, change default settings on iOS, and select a default web browser via a choice screen.
The European Commission has also clarified that technical or commercial barriers preventing developers from using their own distribution channels are unacceptable.
Apple provided the opportunity for distribution through alternative sales channels; however, it established additional technical and commercial requirements, including:
- Registration of the company in an EU jurisdiction;
- Full compliance with DMA requirements, including: guaranteeing equal access conditions to API and iOS system functions, adherence to anti-discrimination principles in content moderation, ensuring transparency of recommendation algorithms, whilst Apple reserves the right to suspend stores violating DMA norms, with mandatory notification to the European Commission;
- Each application distributed through third-party stores undergoes automated verification through the Apple Notarization system;
- Alternative stores require iOS 17.4 or newer;
- Stores must use special Apple APIs;
- Payment of Core Technology Fee (CTF) depending on the number of installations;
- A bank guarantee of €1 million to cover potential claims;
- Liability insurance policy for developers;
- Transparent financial reporting system;
- The store must operate exclusively with users from the EU;
- Stores must comply with EU law (particularly GDPR and Digital Services Act) and legislation of EU member states.
Epic Games, which previously had conflicts with Apple in both American and European jurisdictions regarding distribution rules, became one of the first developers to actually implement the right to an alternative channel of access to users in the EU, launching its own alternative app store for iOS. There are also other stores, such as Aptoide iOS, Altstore, and TutuApp.
On 25 March 2024, the European Commission launched an investigation into Apple in two areas: compliance with user choice rights and conditions for alternative app distribution.
As a result of the investigation, Apple changed its browser choice interface, simplified default settings changes, and allowed the uninstallation of previously built-in applications (such as Safari).
Commission's Decision
On 23 April 2025, the Commission concluded that Apple violated the prohibition on anti-steering practices, thus restricting developers' rights to:
- Inform users about more advantageous offers outside the App Store;
- Redirect users to their own websites or external platforms;
- Accept payment outside the Apple ecosystem without commissions.
Furthermore:
- Apple introduced a Core Technology Fee - a new charge for developers wishing to distribute applications through third-party channels;
- Established strict requirements for third-party app stores;
- Hindered the installation of applications directly using the Internet, which was deemed non-compliant with the DMA.
According to the European Commission, such actions contradict Article 5(4) of the DMA, which enshrines the right of business users to freely promote and provide their services outside the gatekeeper's platform.
Consequences for Apple
Apple has been fined €500 million. The Commission has ordered the company to eliminate technical and commercial restrictions within 60 days. However, Apple has already stated that it disagrees with the decision and will contest it.
Conclusions and Recommendations
The situation with Apple differs significantly from Google, where the possibility of installing applications outside the Play Market and, consequently, creating and developing alternative stores has always existed due to the specific nature of the Android operating system. At the same time, Apple quite actively and consistently protects access to its operating system and the possibility of installing applications outside its App Store.
Depending on the further development of the case, as well as the needs of users and developers for alternative stores on iOS, the market situation may change, although even in markets completely free from platform holder restrictions (for example, Windows), there is still a concentration of users in 1-3 of the largest stores (like Steam and Epic Games Store).
On one hand, the actual presence of only two sales channels in the market (Apple and Google), as well as the tightening of legislation in the field of digital economy and the fight against illegal content, has led to these companies essentially performing quasi-judicial functions, being able to decide on the access of various applications to the market, primarily relying on the provisions and norms of their own policies. If an application is rejected from store access or a developer account is blocked, this practically blocks the developer's access to the entire market. Therefore, the emergence of alternative stores may solve the chronic problem of the mobile market with blockages and refusals in publishing applications.
On the other hand, it cannot be overlooked that Apple and Google already have established practices and standards, making the rules of the game relatively clear and transparent. In the case of active development of alternative stores, they will also need to implement similar standards and policies and monitor their implementation.
Our Arbitration & IT Disputes team has extensive experience in supporting the launch and protection of mobile applications, helps in working with online stores and platforms, protects intellectual property, accompanies the resolution of conflict and complex situations, and assists in adapting to new regulations of legislation and platforms.
Author: Kamal Terekhov
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