Last year, the European Union passed new laws to force big tech companies to open up their platforms to competitors. The deadline for compliance is he is goingAll eyes were on Apple’s response, known for not doing well with others. Now the company has determined how it will comply with the law, and the result is the sly compliance everyone expects. Equally predictable was the reaction of a coalition of wealthy critics hoping for a free slice of the apple pie.
Digital Market Act
In 2023, the European Union is introducing a new system to prevent big tech companies from throwing all their weight into the bloc. The Digital Markets Act and the Digital Services Act regulate so-called “gatekeepers”, the main platforms that connect users and businesses. These include Meta, Alphabet, Apple, Amazon and (TikTok owner) ByteDance, all of which have huge user bases, big money and big power. One of the key provisions of the law requires platform owners like Apple and Google to open up their systems and allow competing services like alternative app stores, a topic we covered extensively in 2020.
25th January, Appl I have released a statement Explain how DMA affects iOS, Safari, and the App Store. The document details how the law makes iOS less secure, and the steps Apple must take to mitigate these risks. While Apple doesn’t specify how much each part of its business does, the App Store is an important part of the services division that… Last quarter totaled $22 billion. So Apple is happy to let you build a competing iOS app store, but to do it you’ll have to climb Mount Everest, dig a tunnel to the center of the Earth, and raise $1 million in cash.
Not quite which.
of to be able to Enter the contest, but you won’t will power per
Creators of a potential competing app store cannot display and sell their products. It was clear from the start that even if Apple opened up its platforms, no third-party app store would be allowed to permanently change the company’s ground rules. If you’re hoping to fire up the Honest Doug App Store (not a scam) and travel the world, you’re in luck.
Potential competitors must still meet Apple’s documentation requirements and have strict rules and monitoring tools that govern quality, hacking, fraud and payment disputes. (The documentation states that these apps are available from Apple “Known malware(Including the ability to close the app if something is detected.) They require basic rules for data collection and give users the same level of control as the corresponding app store. Not to mention compliance with the Digital Services Act. Data Protection – General Regulation and several EU Regulations. Others deal with many acronyms in the field of digital services and online privacy. Basically, if you want to run your own app store, you have to do it at the same level as Apple.
Apple also said app stores need to ensure they can meet their payment obligations to app developers. In this case, it means passing a letter from a major financial institution with proof of its existence Reach a minimum amount of €1,000,000 (about $1.1 million) in debt. To prevent third-party app stores from using Apple’s platform without Apple, developers must pay Basic technology fee At one point, the app was downloaded more than a million times. It has an installation fee of €0.50 (about 54 cents), which is renewed every 12 months after the app is installed. You can decide if it reminds you of Unity’s canceled term payment system.
Currently, Apple charges $99 or $299 depending on whether it wants developers individual or company. Apple then receives a fixed commission for each transaction, either for purchasing the app itself or through an in-app purchase. For smaller developers making less than $1 million a year, Apple takes a 15% cut, while the big names pay 30%. Exceptions include “reader” apps that are free to download and bundled with other subscriptions It’s still unclear under what circumstances sideloading fees might be better (if any) than “taxing Apple” through its own storefront.
Expected answer
Of course, all the explanatory details in Apple’s statement and developer notes were disputed. Critics, many of whom felt that Apple drove too much power into its platform, were upset.
Epic Games CEO Tim Sweeney, who previously sued the company over the issue, was quick to condemn the changes. he He said, new rules It was “an insidious new example of malicious conformism”. It adds that this forces app developers to choose between App Store exclusivity or “an anti-competitive system full of new junk fees for downloads and new Apple taxes on payments they don’t process.”
It was the Coalition for Epic Fairness, a lobbying group supported by Epic, Spotify and Match Group Fast one support One of his biggest supporters. CEO and former Republican spokesman Rick VanMeter said Apple has “no intention” of complying with the DMA. He added that the move was a “shameful insult to the European Commission and the millions of European consumers it represents” and called on officials to reject the move.
Despite Sweeney’s personal objections and objections from his lobbyists, Epic Games has commented on the issue fourteen days — which was removed from the Apple Store when Epic willfully violated Apple’s terms of service — will return to iOS. The company announced that it will open its own Epic Game Store for iOS in 2024, through which it will distribute its own titles. He added in the announcement tweet that he would “continue to advocate before the courts and regulators that Apple is violating the law.”
But it’s not just Apple’s wealthier competitors who feel the company is ignoring the EU with these changes. Andy Yin, founder of privacy service Proton, told Engadget that Apple’s DMA compliance “was done in bad faith” and that the iPhone maker is “fighting tooth and nail to maintain its profits and exclusivity.” The restrictions associated with Apple’s new policies mean that it will be virtually impossible for developers to take advantage of them. The moves “undermine basic user rights” by giving Apple the ability to review apps downloaded outside of the App Store. “The European Commission cannot allow this blatant bending of the rules to go ahead,” he added.
But despite many calls from the European Commission to do so do somethingThe body still hasn’t moved. “We have noted Apple’s announcements before the compliance deadline,” a commission spokesperson told Engadget: “We do not comment on these announcements.” The spokesperson added that they “strongly encourage certain gatekeepers to check their advice with third parties.” These comments were made “without prejudice to the Commission’s assessment of these proposals”.
At the time of writing, there was no comment from senior EU officials on the matter. EU Commission President Ursula von der Leyen and Margrethe Vestager, who heads technology and competition, have been active on social media, but not on this issue. We also await a response from Deezer, which has previously called on the EU to take action. Not mentioned before Apple announced Spotify He posts his own ads It says it will provide app downloads directly from its website.
Update, January 26 around 4:19 PM ET: Spotify has it now He shared his statement Apple’s proposals are a “complete farce”. He added that the alternative App Store plan was “an undesirable alternative to the status quo” that would penalize successful developers for their “success”.
This article contains affiliate links; If you click on this link and make a purchase, we may receive a commission.
