Image Credits: TechCrunchApple has announced changes to iOS in the European Union – including new fees for developers – as the iPhone maker prepares to release its response to the bloc’s competition reform, the Digital Markets Act (DMA). Back in September, the EU designated Apple as one of six “guardians” subject to the DMA, listing the iOS App Store and its Safari browser as “platform apps”. The law imposes several responsibilities and restrictions on gatekeepers. In Apple’s case this includes forcing consent to download apps, among other changes. The deadline for compliance with gatekeepers and DMA is March 7. Today Apple has announced the availability of iOS 17.4 in beta, which it says will help developers prepare for changes to its mobile platform that will be released next month to meet the EU. deadline. In a press release before the beta launch, Apple said it had been working on a DMA solution for several months. But it also warned some of the changes would create new risks for users – reiterating a long-standing argument that the move could reduce the security and privacy of iOS users. Changes that Apple says are coming to iOS developers distributing apps in the European Economic Area (EEA) include: New ways to distribute iOS apps from third-party markets – including new APIs and tools that help developers deliver their iOS apps
download from other software markets. The new system is APIs for creating alternative markets – enabling market makers to install apps and manage changes on behalf of others.
manufacturers from their dedicated marketing program. New keys and APIs for other browser engines – which enable developers to use search engines, other than WebKit, for applications and applications
and in-app experiences. Compatibility request form – where developers can submit additional requests for compatibility with iPhone and iOS devices and software. Last week, details emerged about Apple’s submission to the EU to try to end the default on Apply Pay. Today it said that the changes made to contactless payments on iOS are “DMA compatible” – including new APIs that enable manufacturers to use NFC technology in their banking and wallet applications in the EEA, and new controls that allow users to choose a third party without connector. paid software (or other software marketplace) as standard. Although, as with all the changes that are coming Apple is coming out today, it will be up to the European Commission, which oversees the compliance of the gatekeepers and DMA, to see if they meet the legal requirements or not. If EU regulators find that Apple’s changes do not comply with the DMA, it could result in fines of up to 10% on the global economy and force Apple to rethink. A new business term – and a ‘core tech’ fee As with the number of changes focused on DMA, Apple is also introducing a new business term in Europe – which includes bringing a new fee, called. “Core Technology Fee.” This seems to ensure that Apple will continue to cut in some cases, even if developers choose to go outside of its walled garden – perhaps by distributing their software through other software stores or encouraging users to pay for something by following a link. directing them to their websites to pay. iOS apps distributed from the App Store and/or other app stores pay €0.50 for the first installation of each year over 1 million, per Apple. Developers who want to use the new capabilities announced today, such as the ability to distribute their software through third-party software stores, must agree to the new terms. “New business processes in the EU are necessary to support the DMA’s demands for distribution and payment processing,” Apple wrote in a press release. “This includes investments that reflect the many ways Apple creates businesses – including distribution and availability on the App Store, a secure payment system for the App Store, Apple’s trusted and secure platform, and all the tools and technology to create and share new apps with users around the world. Under the new terms of business, Apple is also reducing the cut that it takes on digital purchases of iOS apps in its App Store: Up to 17% on sales of digital goods and services; or 10% “for most developers and subscribers after their year first,” as Apple says. Apple will also charge a fee for paying for iOS apps on the App Store to use its own payment method – an additional 3%. But developers can choose to use another payment method in their app or link users to their website to arrange external payments. for the App Store – at no “additional cost” to Apple. In addition, Apple said that developers will be able to choose to remain in the existing business – that is, where they collect money for in-app purchases distributed on the App Store of 30% (or 15% for small businesses). Whichever developers choose, they will be able to continue to use the App Store payment system and distribute their apps on Apple’s App Store in the EU, according to Apple. Under the new business model, the tech giant said it estimates that more than 99% of manufacturers will reduce or maintain their investment. It also suggests that less than 1% of developers will pay the Core Technology Fee for their EU apps – as they say this only targets apps that achieve the highest level (ie installed on millions of iOS devices). Apple accepts the introduction of the new fee saying that it reflects the value provided by its technology platform and its services unrelated to the capabilities and distribution of the App Store. While the DMA requires designated gatekeepers to be open, it does not mandate specific businesses. However, it remains to be seen whether Apple’s careful restructuring of its EU business, and the specific decisions it is offering to manufacturers, will win over regulators. Section 6(12) of the DMA states: The gatekeeper shall follow fair, reasonable, and non-discriminatory procedures for business users to access its software, internet search engines and social networking sites listed in the decision pursuant to Section 3(9 ). So Apple needs to state that the current design is “proper, fair, and impartial” to avoid DMA contamination. As part of the changes, Apple is bringing several new features to its platform – which may oppose the new fees – including the notarization of iOS applications (it says that this will include “a basic check that covers all applications, regardless of their distribution method, focusing on the integrity of the platform and protect users “and will include automatic checks and human evaluations); software installation sheets (which will use information from the notarization process to show users an overview of what they are about to download in a way that summarizes the software and its functionality); license to market makers (with checks for Apple to ensure that market makers are committed to “requirements that help protect users and developers”); and enhanced anti-malware protection, which Apple says will prevent iOS apps from launching if they are found to contain malware after being installed on a user’s device. In today’s press conference, Apple representatives stressed that the changes the EU wants to make will open up new threats to iOS users. The company specifically highlighted the security risk of opening up the ability of iOS apps to install other apps on the user’s device (Apple calls these stores “apps in the marketplace”) – something it says is a popular tool for malware. While its representatives said that there has been no spread of iOS malware so far. Although a software developer who accepts Apple’s new business will be able to create a place to sell other software (for example, marketplace software), they will still have to review the software with Apple and meet what they say is their intention to protect users and developers. Some of the upcoming changes – some of which follow the demands of the DMA on how Apple can use its App Store and Safari browser (while others seem to want to encourage iOS users to take special care before choosing other, non-Apple options) – include. a new screen that will be shown to iOS users that will allow them to choose their default browser, showing competing browsers along with Apple’s Safari browser; new notes on the App Store page, which Apple says will let users know the app they’re downloading uses a different payment method; in-app disclosure sheets, to inform users when they are no longer selling with Apple, and when the manufacturer is directing them to use another payment processor; New App Review Processes – which Apple says will ensure that developers communicate accurately about transactions they use with other payment processors; and expand data portability on its Data & Privacy page – where EU users can access information about their use of the App Store and send it to an authorized third party. Notifying iOS users when they no longer use Apple is one way it may want to force people to pay for third-party apps through its payment technology. But, on the flip side, Apple can say that it has a “fair and reasonable” warning to give its users when they go outside of its environment. The DMA also allows gatekeepers to take “reasonable and proportionate” action to ensure that third-party software and stores, or DMA requirements that are intended to be compatible, do not jeopardize the integrity of the hardware, software or systems they provide – and added that any measures such “must be justified by the gatekeeper”. Another change that Apple announced today will enable developers to offer similar features to the game’s app store. In a quick reaction to Apple’s move, Epic Games – which sued the tech giant in the US over the conditions of the App Store – cried foul: Saying that what the EU is offering is a “bad compliance” full of “useless money”
