Apple Faces EU Complaint Over App Store Restrictions

Civil rights groups challenge Apple’s developer policies under the Digital Markets Act, citing barriers to competition.

Two European civil rights organizations have filed a formal complaint against Apple with the European Commission, alleging that the company’s App Store policies violate the Digital Markets Act (DMA). The joint submission by Article 19 and Germany’s Society for Civil Rights claims Apple’s terms for developers and device interoperability restrict competition and harm smaller businesses. This marks another regulatory challenge for Apple, which was fined €500 million earlier this year for breaching DMA provisions. The Commission has acknowledged receipt of the complaint and is currently gathering feedback from market participants.

Developer Barriers and Financial Burdens

At the center of the complaint is Apple’s requirement for developers to provide a €1 million stand-by letter of credit (SBLC) to distribute apps or install third-party app stores on iOS and iPadOS. The groups argue that this financial obligation imposes recurring costs and collateral demands that many small and medium-sized enterprises (SMEs) cannot afford. Such terms, they claim, effectively block smaller players from entering Apple’s ecosystem. The complaint also criticizes restrictions on third-party software installation, which allegedly limit user choice and business flexibility.

Apple has defended its policies, stating that they are designed to ensure minimum standards for user and developer protection. In a statement, the company blamed the Commission for mandating confusing business terms and claimed it had proposed more flexible SBLC conditions, which were rejected. The Commission, acting as the EU’s competition watchdog, emphasized the importance of third-party input in enforcing the DMA. It confirmed that Apple’s business terms are under ongoing review as part of broader compliance monitoring.

Regulatory Context and DMA Enforcement

The Digital Markets Act aims to curb the dominance of large tech firms by enforcing fair access and interoperability across digital platforms. Under the DMA, companies designated as “gatekeepers” must adhere to specific obligations that promote competition and user choice. Apple’s App Store and operating systems are subject to these rules due to their market influence. The complaint alleges that Apple’s current practices obstruct smaller developers and app store operators from integrating with its devices.

Penalties under the DMA can reach up to 10% of a company’s global annual revenue, making enforcement a significant concern for major tech firms. The Commission has already taken action against Apple this year, and further investigations could lead to additional fines or mandated changes. Civil society groups play a growing role in identifying potential violations and pushing for regulatory oversight. Their involvement reflects increasing scrutiny of platform governance and digital market fairness.

Implications for Apple and the Broader Ecosystem

If the Commission finds merit in the complaint, Apple may be required to revise its developer terms and reduce financial barriers for third-party app distribution. Such changes could open the iOS ecosystem to more competition and innovation, particularly from smaller firms. The outcome may also influence how other gatekeepers structure their platform policies under the DMA. Apple’s response and future compliance efforts will be closely watched by regulators and industry stakeholders.

The case highlights ongoing tensions between platform control and regulatory mandates in the EU’s digital economy. As enforcement of the DMA intensifies, tech companies face growing pressure to align their business practices with European standards. The Commission’s approach to Apple could set precedents for future actions against other dominant platforms.