In response to forthcoming European Union regulations, Apple could face significant consequences if its App Store modifications fail to align with the new rules, warned the EU’s industry chief on Friday. As part of compliance with the upcoming Digital Markets Act (DMA), Apple plans to permit developers to distribute their apps through alternative stores on its devices. Starting early March, developers will have the option to introduce alternative app stores on iPhones and opt out of using Apple’s in-app payment system, known for charging commissions up to 30%.
Despite these changes, critics argue that Apple’s fee structure remains unjust, potentially violating the DMA. In an exclusive statement to Reuters, EU industry chief Thierry Breton emphasized that the DMA aims to foster fair and open digital markets. He mentioned that from March 7 onwards, the EU will evaluate companies’ proposals with third-party feedback, asserting, “If the proposed solutions fall short, we will not hesitate to take strong action.”
Under Apple’s updated EU regulations, developers must still submit apps for review by Apple to address cybersecurity risks and fraud concerns. Additionally, Apple device users in the EU will gain the ability to select default web browsers and contactless payment apps, allowing for contactless payments without relying on Apple Pay.
Even if developers opt out of using Apple’s App Store or payment system, they will still be subject to a “core technology fee” of 50 euro cents per user account per year. Apple clarified that this fee only applies to developers who choose to adopt the new business terms. According to Apple, under the revised terms, approximately 99 percent of developers in the EU are expected to either reduce or maintain their fees to the company.
ALSO READ — Intel’s stock drops as it falls further behind in the AI race
However, critics argue that the concessions offered by Apple’s new rules may not outweigh the drawbacks. Privacy-focused software firm Proton’s founder and CEO, Andy Yen, highlighted the challenges associated with Apple’s policies, stating that while allowing alternative payments and marketplaces seems positive, the conditions attached make it practically impossible for developers to benefit. Paulo Trezentos, CEO of alternative app store Aptoide, acknowledged the thoroughness of the changes but deemed the fees still too high, expressing intentions to provide formal feedback to the European Commission.
Notably, major companies such as Meta and Spotify, with millions of free users, could be more significantly impacted than smaller developers. Apple did not immediately respond to requests for comment, and the European Commission encouraged designated gatekeepers, like Apple, to test their proposals with third parties ahead of the compliance deadline on March 7.