Under pressure from the EU, Apple is changing the rules of the game in the app market

Brother

Professional
Messages
2,566
Reputation
3
Reaction score
352
Points
83
Meta and Spotify are preparing to save their customers from Apple's universal control.

Apple plans to introduce new fees and restrictions when it starts allowing app downloads outside of the closed iPhone ecosystem. The decision is a response to a new EU law aimed at loosening Apple's control over apps, and for the first time will allow users to install software on the iPhone without using the App Store. This is reported by The Wall Street Journal, citing information received from sources familiar with the company's plans.

The new policy, which will be applied only in Europe, will be a serious test for the law and its application. Apple faces challenges from courts, regulators, and software developers around the world because of its strict control over apps.

Meta Platforms, Spotify and other companies are preparing for the new rules by developing new download options for their customers. Meta is considering downloading apps directly from Facebook ads*, and Spotify plans to offer users the option to download some of its iPhone apps directly from the company's website.

Apple defends its policy of controlling downloads through the App Store, claiming that it is necessary to ensure the security of the iPhone and protect it from viruses. Critics have called Apple's system anti-competitive, pointing to high fees and unfair competition with Apple's own apps.

Apple's approach to EU legislation will ensure that apps downloaded outside the App Store are closely monitored. The European Commission is in talks with Apple and other tech companies about the new rules. Apple's full decision has not yet been submitted to the commission.

Restrictions and payments could reignite tensions with app developers who hoped the new law would allow them to circumvent Apple's restrictions and high fees. Apple also plans to offer developers the opportunity to use alternative payment systems with a commission of 27%, instead of the standard 30%. According to app makers, a 27% commission is likely to discourage most developers from offering alternative payments.

In response to the new EU rules, Apple will face new challenges in its fight for control over third-party software. According to analysts from Oppenheimer, the App Store's operating margin is 70% -80%. It is worth noting that Apple has been working on its solution for more than a year to meet the EU deadline (until March 2024).
 
Top