Apple unveiled its plans on Thursday to allow developers to distribute their applications in the European Union outside of its own App Store. This is in response to new EU regulations known as the Digital Markets Act (DMA), which imposes obligations on companies with over 45 million monthly active users and a market capitalization of at least €75 billion ($82 billion or PLN 383.74 billion), including the requirement to adapt their apps to competitor apps and allow users to choose which apps should be preinstalled on their devices.
Starting in March, developers will be able to create alternative app stores on iPhones and disable the use of Apple’s in-app payment system, which charges commissions of up to 30%. However, developers will still need to submit their apps to Apple for risk evaluation related to cybersecurity and clear fraud, and Apple will charge a “basic technologies fee” to large developers, even if they don’t use any Apple payment services.
Tim Sweeney, CEO of Fortnite creator Epic Games, who initiated an antitrust lawsuit against Apple in the US, criticized the company’s planned changes as “rotten garbage” and stated that he doesn’t believe these actions comply with the provisions of the Digital Markets Act.
“Apple is suggesting that they can decide which stores can compete with the App Store. For example, they could block Epic from launching the Epic Games Store and distributing Fortnite through it or block Microsoft, Valve, Good Old Games, or new market participants,” Sweeney said in a series of posts on the social media platform X.
Apple has provided tools that allow developers to start making changes to their business agreements, and customers will see these changes after updating their iOS operating system in March.
Companies like Epic and Spotify have long claimed that Apple’s commissions and restrictions hinder the growth of their businesses. However, in recent years, Apple’s approach to the App Store, which was once monolithic, has become a mosaic of rules as the tech company responds to legal challenges and regulations.
For example, earlier this month, Apple announced that it would change the rules regarding linking to third-party websites in apps for making payments in the US, to comply with a ruling in the antitrust case against Epic. However, Apple also stated that it will take a 27% commission from revenue generated through those links, which, combined with the typical payment processing fee of 3%, means minimal economic benefits for developers.
In the EU, developers will be able to use third-party payment processors in App Store apps for free. Apple will also allow iPhone users in the EU to choose their default web browser and contactless payment app, meaning that EU users will be able to make contactless payments without using Apple Pay.
However, even if developers don’t use the App Store or Apple’s payment system, they will still have to pay a “basic technologies fee” of €0.50 per user account per year.
Apple stated that only large developers will have to pay this fee, although it did not specify how many users would be affected by the fee. The company announced that the first million user accounts will be exempt from the fee, and that non-profit organizations, schools, or governments will not be charged.
In the FAQ section below are the most important details about the article:
Q: What plans does Apple have regarding the new EU regulations on digital markets?
A: Apple plans to allow developers to distribute apps outside of the App Store in the EU.
Q: What criteria do companies need to meet to be subject to the new EU regulations?
A: Companies must have at least 45 million monthly active users and a market capitalization of at least €75 billion.
Q: What does the Digital Markets Act mean for companies covered by it?
A: Companies will need to adapt their apps to competitor apps and allow users to choose which apps should be preinstalled on their devices.
Q: How will developers be able to create alternative app stores for iPhones?
A: Developers will have the option to create their own app stores starting in March.
Q: Will developers still need to submit their apps to Apple?
A: Yes, developers will still need to submit their apps to Apple for risk evaluation related to cybersecurity and fraud.
Q: What fees will be charged by Apple?
A: Apple charges a commission for using its in-app payment system, as well as a “basic technologies fee” to large developers.
Q: What tools has Apple provided to developers?
A: Apple has provided tools that allow developers to start making changes to their business agreements.
Q: Why do companies like Epic and Spotify criticize Apple?
A: These companies claim that Apple’s commissions and restrictions hinder the growth of their businesses.
Q: What changes did Apple announce earlier this month?
A: Apple changed the rules regarding linking to third-party websites for making payments in the US.
Q: What benefits will developers have in the EU?
A: Developers in the EU will be able to use third-party payment processors for free. Users will also have the option to choose their default web browser and contactless payment app.
The source of the article is from the blog smartphonemagazine.nl