Apple is adjusting its policies due to the European Union’s (EU) Digital Markets Act (DMA), which requires companies with over 45 million monthly active users and a 75-billion-euro market capitalisation to facilitate compatibility with rival apps and allow users to choose pre-installed applications.
Starting in March, developers will have the option to distribute their apps through alternative stores on iPhones, providing an alternative to Apple’s App Store. Additionally, developers can opt out of using Apple’s in-app payment system, which traditionally charges commissions of up to 30%.
However, apps will still undergo Apple’s review for cybersecurity risks and fraud, and the tech giant still plans to impose a “core technology fee” on major app developers, regardless of their use of Apple’s payment services.
The move aligns with the DMA’s principles but has faced criticism from Tim Sweeney, CEO of Epic Games, known for the popular battle royale game, Fortnite. Sweeney referred to Apple’s changes as “hot garbage” and questioned their legality under the DMA. Concerns include Apple’s ability to determine which stores are allowed to compete with its App Store.
Apple has released tools for developers to implement these changes to their business arrangements. Consumers will witness the alterations with an update to the iOS operating system scheduled for March. The adjustments reflect Apple’s evolving approach to its App Store policies, responding to legal and regulatory challenges.
While Apple has faced longstanding criticism from companies like Epic and Spotify for high commissions and restrictions, the company’s recent moves aim to address some concerns while maintaining control over certain aspects. The DMA requires large tech companies to foster competition and give users more choices, leading to changes in policies affecting the App Store, in-app payments, and default app selections in the EU.
