Apple has recently announced a series of significant changes to its iOS platform in the European Union, in response to the Digital Markets Act (DMA). The DMA designates Apple as one of the “gatekeepers” and imposes various obligations and restrictions on the company. These changes are set to be rolled out next month to meet the compliance deadline of March 7.
Key Takeaway
Apple is making significant changes to its iOS platform in response to the Digital Markets Act in the European Union, introducing new business terms and a “Core Technology Fee” while emphasizing potential security risks associated with the changes.
iOS 17.4 Beta and Developer Preparation
Apple has revealed the availability of iOS 17.4 in beta, aiming to help developers prepare for the upcoming changes. The company has been working on its solution to comply with the DMA for months and is now introducing new options for distributing iOS apps from alternative app marketplaces, along with new frameworks and APIs for creating alternative app marketplaces and browser engines.
Compliance and Potential Impact
While Apple is making these changes to comply with the DMA, it has also warned about potential risks for users, particularly in relation to sideloading. The European Commission will assess whether these changes meet the law’s requirements, and non-compliance could result in fines of up to 10% of Apple’s global annual turnover.
New Business Terms and Core Technology Fee
Alongside the DMA-focused changes, Apple is introducing new business terms in Europe, including the introduction of a “Core Technology Fee” to ensure continued revenue in certain scenarios. The company is also adjusting its commission structure for digital purchases on iOS apps, offering reduced rates for transactions and subscriptions.
Regulatory Scrutiny and Justification
Apple’s restructuring of its business terms and the specific choices presented to developers will be subject to regulatory scrutiny. The company will need to justify that its new fee structure and business terms are fair, reasonable, and non-discriminatory, as required by the DMA.
Additional Platform Features and Security Concerns
Apple is introducing a number of new features to its platform, such as notarization for iOS apps and app installation sheets, which it may argue justify the new fee. However, the company has emphasized the potential security risks associated with the changes, particularly in relation to the installation of alternative app stores and the potential for malware attacks.
