Apple Faces Potential Sanctions If App Store Changes Fail to Meet EU Regulations
The European Union's industry sector forewarned Apple that the company may face severe consequences if its changes to the App Store do not comply with impending laws. Apple has revealed intentions to enable software developers to distribute their programs to Apple devices through alternate stores to comply with the EU's upcoming Digital Markets Act (DMA).
Developers will not have to use Apple's in-app payment mechanism, which charges commissions of up to 30%, and can create substitute app stores for iPhones starting in early March. Critics counter that these adjustments are insufficient and that Apple's pricing system is still unjust and might even be in violation of the DMA.
In an exclusive interview with Reuters, EU industry director Thierry Breton said, "The DMA will open the internet to competition so that digital marketplaces are fair and open. Already, things are changing. We will evaluate company offers starting on March 7 and consider outside input." He continued, "If the proposed solutions are not good enough, we will not hesitate to take strong action."
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Apple developers will still need to submit apps for evaluation to Apple under the new system to address evident fraud and cybersecurity issues. Users of Apple devices in the European Union will also be able to select which default web browsers and contactless payment apps to use, enabling contactless payments independent of the Apple Pay system.
Although developers can choose to work around Apple's payment gateway and App Store, they will still have to pay an annual "core technology fee" of 50 euro cents per user account. Apple made it clear that only developers who agree to the new conditions of business will be charged this fee.
Apple claims that 99% of developers would either keep or lower the fees they owe Apple under the updated terms for EU apps. Bigger businesses with millions of free users, like Meta and Spotify, might be more heavily impacted. It was not immediately possible to reach representatives of Spotify or Meta for comment.
The trade-offs that Apple is offering, according to those who oppose the company's new regulations, are not worth it. "Allowing alternative payments and marketplaces seems positive on the surface, but the strings attached to Apple's new policies mean that in practice it will be impossible for developers to benefit from them," said Andy Yen, CEO of privacy-focused software company Proton, expressing skepticism.
The CEO of Aptoide, a competing app shop, Paulo Trezentos, praised the modifications but said the costs were still excessive. He stated that he intended to give the European Commission official input. Requests for Apple's opinion on the subject have not yet received a response. "We take note of Apple's announcements ahead of the compliance deadline on March 7," a European Commission official stated. Regarding these announcements, we say nothing. Designated gatekeepers are highly encouraged to test their ideas with outsiders."
The Source : ibmot
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