Apple could face severe consequences if its adjustments to the App Store don’t align with the upcoming regulations from the European Union, cautioned the bloc’s industry chief on Friday.
In a move to comply with the EU’s forthcoming Digital Markets Act (DMA), Apple has declared that it will allow software developers to distribute their apps on Apple devices through alternative app stores. Starting in early March, developers will have the choice to offer alternative app stores on iPhones and opt out of using Apple’s in-app payment system, which currently imposes commissions of up to 30%.
Despite these changes, critics argue that Apple’s fee structure remains unfair and could potentially violate the DMA. Responding to questions about Apple’s intentions, EU industry chief Thierry Breton informed Reuters, “The DMA will open the gates of the internet to competition so that digital markets are fair and open. Change is already happening. As of March 7, we will evaluate companies’ proposals, with the input of third parties.” Breton emphasized that if the proposed solutions fall short, the EU will not hesitate to take strong action.
Under the new EU regulations, developers will still need to submit their apps to Apple for review regarding cybersecurity risks and apparent fraud. Additionally, Apple device users in the EU will gain the ability to choose default web browsers and contactless payment apps, enabling them to make payments without relying on the Apple Pay system.
Even though developers can now avoid using Apple’s App Store and payment system, a mandatory “core technology fee” of 50 euro cents per user account per year will still apply. Apple clarified that this fee is applicable only to developers agreeing to the new business terms. The company estimates that under the new terms, 99 percent of developers in the EU would either reduce or maintain their fees owed to Apple. Larger companies like Meta and Spotify, with millions of free users, are expected to be more significantly impacted. As of now, neither company has provided immediate comments on the matter.
