Apple could face significant consequences if its adjustments to the App Store fail to align with upcoming European Union regulations, warned the EU’s industry chief on Friday. In an effort to comply with the EU’s forthcoming Digital Markets Act (DMA), Apple will soon permit software developers to distribute their apps through alternative stores on Apple devices.
Commencing in early March, developers can offer alternative app stores on iPhones and choose not to use Apple’s in-app payment system, which currently imposes commissions of up to 30%. Critics argue that the changes fall short, maintaining that Apple’s fee structure remains unjust and could potentially violate the DMA. EU industry chief Thierry Breton stated, “The DMA will open the gates of the internet to competition so that digital markets are fair and open,” adding, “If the proposed solutions are not good enough, we will not hesitate to take strong action.”
Under the new regime, Apple developers still need to submit apps for review to address cybersecurity risks and obvious fraud. EU Apple device users gain the ability to choose their default web browsers and contactless payments apps, allowing for contactless payments without using Apple Pay.
However, even if developers opt out of using Apple’s App Store or payment system, they are obligated to pay a “core technology fee” of 50 euro cents per user account per year. Apple clarified that this fee applies only to developers who choose to accept the new business terms. Apple estimates that under these new terms, 99 percent of developers would see a reduction or maintenance in the fees owed to the company. Critics caution that the trade-offs in Apple’s new rules offer minimal benefits.
Andy Yen, CEO of Proton, noted the challenges for developers to benefit from these policies in practice. Paulo Trezentos, CEO of alternative app store Aptoide, praised the thoroughness of the changes but criticized the fees as still too high. Apple has yet to respond to comments, and the European Commission encourages designated gatekeepers to test their proposals with third parties ahead of the compliance deadline on March 7.
