The compliance moves were met with concerns from major developers as the other five designated gatekeepers also prepare for the full implementation of the DMA in March
Apple announces changes to iOS to comply with the DMA
On 25 January 2024, Apple announced a series of changes planned for its iOS software, app store and Safari browser in order to comply with the EU’s Digital Markets Act (DMA). Most notably, the firm has announced it will allow users to download so-called “alternative app marketplaces'' to their Apple devices, breaking the long-time hold that the Apple App Store has held as the sole distributor of apps. App developers will also be able to choose whether to use Apple’s payment services or integrate a third-party system for in-app purchases. All apps will still be subject to a screening process conducted by Apple regardless of its distribution channel. While these changes will open up access for EU consumers and ease some restrictions for developers in theory, Apple is simultaneously revamping its fees structure for developers. If developers choose to continue using the Apple App Store for distribution, they will face a 17% commission, down from 30%, with an added 3% fee for using Apple’s payment services. All apps, including those downloaded through an alternative marketplace, will also incur a newly added Core Technology Fee, which charges developers an additional €0.50 (£0.43) per user past 1 million each year. Comparatively, US developers who opt out of Apple’s payment systems still face a 27% commission on the App Store. Additionally, Apple announced that EU users will be prompted to select their default browser upon update to iOS 17.4, potentially loosening the dominance held by Apple’s Safari browser as the longtime preset default for Apple devices. Last year, the firm also shared that Apple devices would support Google’s Rich Communication Services (RCS) standard as of 2024 while its iMessage service remains under investigation for potential designation under the DMA as well.
Developers and some policymakers respond to app store plan with scepticism and scorn
Despite the appearance of major changes made by Apple, numerous major app developers as well as high-profile policymakers have responded with concern that the tech giant has flouted the intent of the DMA while claiming compliance. Longtime Apple critic Tim Sweeney (CEO, Epic Games) characterised the changes as “malicious compliance” and “hot garbage” even while pledging to launch an alternative app store through the new policies. In an official statement, Spotify referred to the plan as a “complete and total farce” and “extortion” while noting that the Core Technology Fee would penalise new and upcoming developers for achieving growth. When prompted, European Commissioner for Internal Market Thierry Breton noted the EC’s official assessment of proposed compliance plans will take place from 7 March 2024, when the DMA’s rules go into effect for all designated gatekeepers. However, Breton did include a warning that the EC “will not hesitate to take strong action” should Apple’s or other firm’s proposals fail to measure up. This could come in the form of additional requirements or sanctions.
Other big tech firms are also preparing to launch new features to ensure compliance
In addition to Apple, five other firms, responsible for 19 other core platform services, will be required to comply with DMA rules by the impending March deadline. Meta announced it will allow EU users to unlink account information previously shared automatically between Facebook, Instagram, Messenger and other related services. Google confirmed that it will create default choice screens for both its Android operating system and its Chrome browser and allow users greater control over the data shared between Google services. Microsoft began similar work in 2023 to give users of its Windows system more choices when selecting browser and search services as well. Even while the majority of the group of gatekeepers have begun publicly working on aspects of DMA compliance, the firms have concurrently launched a number of pending challenges to the status of their services under the law, which may extend beyond next month’s compliance deadline but will not impact the requirements for compliance in the interim.
