Apple To Make Changes In The App Store Policy Following EU’s DMA Directives،
Earlier this year, the European Union ordered 22 major tech companies to comply with the Digital Markets Act, including Cupertino-based tech giant Apple. The union issued a ruling in September, giving the company six months to comply. It turns out that Apple won’t challenge the guidelines at all. Instead, the company will comply. According to the latest Form 10-K filed with the U.S. Securities and Exchange Commission, the company “expects to make additional business changes in the future.”
What is the Digital Markets Act?
The DMA aims to improve access and compatibility of European applications and services, in order to make the sector fair for all. The EU created the regulation in November 2022, which came into force in 2023. Under the DMA, the EU imposes stricter restrictions and laws on big tech companies, viewing them as the gatekeepers of the economy digital, and encourages competition and innovation.
The DMA examines companies that serve more than 45 million monthly users and have a market capitalization of €75 billion or more. For those catching up, it was the EU that came up with a universal charging solution for electronic gadgets like speakers, laptops and smartphones, ordering tech giants like Apple to use USB-C ports on their devices, which is why the iPhone 15 has a USB port. -Port C instead of Lightning port.
Here’s what Apple could change in response to the DMA directive
One of the biggest changes to Apple’s app business due to the DMA orders is that the company must provide space for third-party app stores on iOS devices, such as iPhones and iPads. . According to the DMA, not allowing third-party app stores gives Apple complete control over which apps and services users can install and use on their devices. So he decided to reduce the company’s monopoly and increase competition.
Developers might be able to contact customers outside of the App Store
As mentioned earlier, Apple has agreed to the DMA’s regulations and is working to make changes to the App Store. The latest Form 10-K reveals that the changes could affect how Apple charges developers for access to its App Store and how it handles distribution of apps outside of the store. A clause in the form indicates how the company expects changes related to how it allows developers to communicate with users in the App Store.
Currently, the App Store does not allow apps to redirect users to a third-party download or payment page. Remember when Apple blocked Epic Game’s Fortnite from the App Store? The latter would have tried to circumvent the App Store payment system, which allows Apple to charge a commission on all transactions.
Change could affect annual App Store fees
Financially, the company also mentioned how this change could impact its revenue through the App Store and how it might have to change the annual fees charged to developers. Apple likely saw the decision coming and began preparing to make the required changes in the App Store. The company nevertheless has until March 2024 to deploy the changes.
In a related update, Google and other European telecommunications companies sent a letter to the EU, asking them to review Apple’s iMessage and whether the service should be made more compatible. In the past, Google has repeatedly criticized Apple for sticking with its outdated iMessage technology and for not adopting the latest RCS service.
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