APPLE AND ALPHABET MUST STOP HINDERING ACCESS TO THIRD-PARTY APPLICATION STORES AND THE USE OF THIRD-PARTY PAYMENT SYSTEMS

EGDF welcomes the Commission’s preliminary findings concluding that both Apple’s and Alphabet’s current DMA compliance practices do not allow game developers to inform customers, free of charge, of alternative offers outside their mobile application stores, steer them to those offers and allow them to make purchases. EGDF fully agrees with the Commission on the fact that, due to a number of restrictions imposed by Apple and Alphabet, game developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store and Google Play store.

The Commission has ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future, which includes adopting conduct with an equivalent object or effect. In practice, according to the preliminary findings by the European Commission, this means that the following Apple’s contract terms are not compliant with the Digital Markets Act:

• The core-technology fee: Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so, as this requires them to opt for business terms which include the new core-technology fee. 
• Scare screens: Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.
• Restrictions on purchases made outside the App Store: Apple has introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. 

Apple is required to comply with the Commission decision within 60 days. EGDF urges game developers, publishers and platforms to share any findings on Apple’s further non-compliance with DMA with EGDF or directly with the European Commission.

Similarly, the Commission has concluded that the following Alphabet’s contract terms are not compliant with the Digital Markets Act:

• Initial Acquisition fee:  The current fees charged by Alphabet go beyond what is justified. For example, Alphabet charges developers a high fee over an unduly long period of time for every purchase of digital goods and services.
• Anti-steering contract terms: Alphabet technically prevents certain aspects of steering, for instance, by preventing app developers from steering customers to the offers and distribution channels of their choice.

All in all, EGDF underlines that both Apple and Alphabet must be stopped from setting further restrictions on the use of third-party application stores or payment systems:  

• Parental control tools are core operating system services: Currently, Alphabet does not consider parental control tools to be core operating system services that it must provide access to for all game developers under DMA.
• Apple and Alphabet must allow game developers to inform customers, free of charge, of alternative offers outside their mobile application stores, steer them to those offers and allow them to make purchases. Apple or Alphabet must not charge any fees on purchases that are made outside of a game, and they must allow games downloaded from their application stores to steer customers to third-party application stores or third-party in-game stores. 

For more information, please contact

Jari-Pekka Kaleva 
Managing Director
EGDF 
jari-pekka.kaleva@egdf.eu 
+358 40 716 3640
www.egdf.eu

The European Games Developer Federation e.f. (EGDF)1 unites 24 national trade associations representing game developer studios based in 22 European countries: Austria (PGDA), Belgium (FLEGA and WALGA), Croatia (CGDA), Czechia (GDACZ), Estonia (Gamedev Estonia), Finland (Suomen pelinkehittäjät), France (SNJV), Germany (GAME), Italy (IIDEA), Lithuania (LZKA), Netherlands (DGA), Norway (VIRKE Produsentforeningen), Poland (PGA and IGP), Portugal (APVP), Romania (RGDA), Serbia (SGA), Slovakia (SGDA), Spain (DEV), Sweden (Spelplan-ASGD), Switzerland (SGDA), Turkey (TOGED) and the United Kingdom (TIGA). Through its members,

EGDF represents more than 2 500 game developer studios, most SMEs, employing more than 45 000 people. The games industry represents one of Europe’s most compelling economic success stories. Located at the crossroads of the ICT and cultural industries, the game industry is one of the rapidly growing segments of the cultural and creative industries. In 2022, there were around 5 300 game developer studios and publishers in the EU, employing over 90 000 people and running a combined turnover of over €19bn. In 2023, Europe’s video games market was worth €25,7bn, and the industry has registered a growth rate of 5% in key European markets. The European digital single market is the third-largest video game market globally.