When the EU introduced the Digital Markets Act, it appointed platforms as gatekeepers aimed at opening things up and preventing monopoly abuse. As a result, Apple has radically changed the iPhone ecosystem for EU users, and as now confirmed, similar changes are coming for iPad users as well.
My usual reminder: although this only affects users in the European Union, other governments will be watching closely to see if they want to implement similar legal changes in their countries.
May 5 update below. This post was first published on May 2, 2024.
inside Update news for developers On Thursday 2nd May, Apple confirmed that the changes it (reluctantly) introduced to the iPhone will be rolled out to the iPad in the autumn – the EU has given six months’ consent and the fall fits into that timeframe.
“This week, the European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act,” Apple said. As requested, Apple will roll out the latest iOS changes to iPadOS for European Union (EU) apps later this fall. Developers can adopt alternative terms for apps in the EU that include these additional features and options in iPadOS, or stick with Apple’s current terms.
The changes allow for comprehensive, alternative app marketplaces where users can download apps, instead of just the Apple App Store. Additionally, users can choose a different browser to use on the device, and the browser does not have to rely on WebKit, as there are browsers on the iPhone in the US, UK, and elsewhere.
Users can also choose their preferred default search engine, which seems to have really changed the landscape in the EU.
Additionally, there are many more ways to make contactless payments than just relying on Apple Wallet and Apple Pay how Apple says“It includes APIs that enable developers to use NFC technology in their banking and wallet apps across the European Economic Area.”
In this alternative market, app developers must pay an underlying technology fee for downloads after the first million installs, but Apple now says that installing the same app on an iPhone and iPad only counts as one install, helping to keep the 1 million threshold. . the bay.
While many developers will continue to work only on the App Store, this move to the iPad could be a game changer.
Updated May 5, 5:42 am. Confirming that the iPad will be subject to the same rules as the iPhone in Europe is part of the story Apple has been telling in recent days. Also, apart from the above changes, another change in the core technology fee was also announced.
As you may have noticed, CTF is one of the most controversial components introduced by Apple. It was introduced to reflect the value Apple has invested in alternative terms to keep users safe. After the first million installs, the developer pays $0.54 (0.5 euros) per annual install, so the news that the same app downloaded on iPhone and iPad counts towards that total is welcome.
But beyond that, Apple says no CTF is required if the developer has no revenue, such as free apps with no ads. Dr. Apple“This includes creating a free app without monetization and not tied to any form of revenue (physical, digital, advertising or otherwise).” Apply without CTF.
Young developers with a global annual turnover of less than 10 million euros receive free participation in the CTF for three years to help them develop innovative apps and rapidly grow their businesses.
Updated May 5 at 2:30 p.m. There were more details on how to better protect small developers from core technology fees. I understand why Apple charges for it: the security of users’ iPhones seems to be Apple’s primary concern, and it costs money. It has been repeatedly noted that using alternative app marketplaces is less secure than Apple’s own app marketplace, so extra security precautions are necessary.
Not only will there be a three-year free break, but there will be a cap, Apple says. It says: “During this three-year period, a small developer that has not previously achieved more than 1 million first annual installs will, for the first time, pay the threshold, paying no CTF, even if it continues to exceed 1 million first annual installs. During this period , small developers with a total turnover between 10 and 50 million euros over a three-year period will start paying CTF up to a maximum of 1 million euros per installation year after the first million annual installations.”
With a worldwide turnover of 10 million euros, the developer can pay Apple 10% or up to 1 million euros, although this limit applies as a flat rate up to a turnover of 50 million euros and falls below the upper limit of 2%.
Of course, many developers will decide to continue as before, i.e. just use Apple’s App Store and pay the associated commission. It was explained straight away, but there are still complications with the new regulations that developers can consider when deciding which path to take.
What is certain is that by 2024 there will be dramatic changes in the way the iPhone and now the iPad work in the EU this year. Will other countries adopt similar laws to force such changes on Apple? It seems likely, and the real question is not if it will happen, but when.