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Apple surrenders to the EU

by on09 November 2023


Will comply with EU’s Digital Markets Act


Apple has bowed to the inevitable and said it “expects to make” App Store policy changes to comply with EU’s Digital Markets Act (DMA).

The pan-EU DMA came into application across the bloc back in May. Apple has likely been expecting for months, if not years, because it was always likely that there was going to be some regulation to stop what it was doing.

Even up to the last minute Jobs’ Mob was fighting the law by claiming that its Safari browser was, in fact, three separate entities catering to iOS, iPadOS, and macOS. The EU apparently laughed at that one.

Under the law, Apple is obligated to open up its Messages and App Store to third-party alternatives. The implications of failing to do so within a half-year period are severe and could result in an investigation, and for first-time offenders, potential fines of up to 10 per cent of global turnover. Repeat offenders face an even steeper penalty of up to 20 per cent.

The iPhone-maker has updated the language pertaining to its risk factors in the fiscal year 2023 Form 10-K filing, with the revised text presenting a shift from the company’s previous position, indicating a more definitive stance on potential modifications to the App Store policies.

Apple said that future changes could also affect how the company charges developers for access to its platforms; how it manages distribution of apps outside of the App Store; and “how, and to what extent, it allows developers to communicate with consumers inside the App Store regarding alternative purchasing mechanisms.”

The DMA switches competition enforcement on tech giants to the front foot by putting a series of obligations on designated gatekeepers. These include requirements not to prevent business users from promoting their own offers to end users, and a ban on preventing the installation of third-party app stores, to name two which look very relevant to Apple’s App Store.

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