Apple has announced plans to comply with the European Union’s Digital Markets Act (DMA) by allowing software developers in the EU to distribute their apps outside of Apple’s App Store. The move comes in response to the DMA, which imposes requirements on large companies, including making apps compatible with rivals and giving users the ability to choose pre-installed apps. Starting in March, developers can offer alternative app stores on iPhones and opt-out of using Apple’s in-app payment system, which is known for charging commissions of up to 30%. However, apps will still undergo Apple’s review process for security and fraud.
The changes are part of Apple’s response to the DMA, a new EU law targeting major tech companies. Developers will have more flexibility in offering alternative app stores and payment systems on iPhones, breaking away from Apple’s closed ecosystem. The company will still charge a “core technology fee” to major app developers, even if they choose not to use Apple’s payment services. Apple’s move is seen as an effort to comply with the DMA while maintaining some control over its ecosystem.
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Tim Sweeney, CEO of Epic Games, criticized Apple’s planned changes, calling them “hot garbage” and questioning their legality under the DMA. Sweeney argues that Apple’s proposal allows the company to choose which stores can compete with its App Store, potentially blocking competitors like Epic Games Store, Microsoft, and others. The ongoing legal and regulatory challenges faced by Apple have led the company to make adjustments to its App Store policies, creating a patchwork of rules to address various concerns raised by developers.
Apple has released tools for developers to implement these changes to their business arrangements, and consumers will see the updates with the iOS operating system release in March. The changes are expected to impact Apple’s App Store revenue model, particularly the fees associated with in-app payments. While Apple aims to comply with regulatory requirements, critics like Tim Sweeney believe the company’s adjustments may not go far enough to address concerns raised by developers and regulators. The evolving landscape of app store regulations highlights the ongoing scrutiny of major tech companies and their control over digital platforms.
