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App Store and DMA: all against Apple for its “malicious compliance” with the European standard

  • February 22, 2024
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Meta, Microsoft, Spotify, Epic… These are just some of the big tech companies that, according to the Financial Times, are putting pressure on those in charge of the

Meta, Microsoft, Spotify, Epic… These are just some of the big tech companies that, according to the Financial Times, are putting pressure on those in charge of the European Union to reject changes “cunning” suggested by Apple in relation to the App Store and DMA. They are asking the European executive to call Apple to task and prevent what they say is “malicious compliance” and force those in Cupertino to go back to square one and introduce new policies that are in line with the letter and spirit of the Digital Markets Act, which will be launched in Europe next month.

Putting the case into context; they say the App Store is today an essential part of Apple’s multi-billion dollar mobility business. Although the late Steve Jobs originally didn’t want his iPhone to run third-party apps, subsequent changes created an app store that has become the most profitable on the planet. And not just in direct software dollars, but also as a feedback formula for hardware sales.

The App Store is an impressive business, and Apple clearly doesn’t want to shrink it. But has been in the eye of the hurricane for years for what is considered a “monopoly” operation, questionable revenue policies, and the amount of money Apple charges for each third-party app sold in the store. Many legal and administrative actions have been taken against it, and now the new European standard is bringing it back to the forefront of news and controversy.

App Store and DMA

Apple, like other big tech companies, has to adapt its policies to the new European law on digital markets. The rule defines large platforms as “gatekeepers” and aims to ensure they behave fairly online. In Christian: that major American technology companies they cannot take advantage of their dominant position (just like today) favoring their own solutions and thereby fueling competition and favoring the alternatives of other smaller companies whose operations end up depending on these “gatekeepers”.

According to the DMA, Apple can no longer monopolize the iOS app market and must allow developers to distribute their apps in alternative markets. This means that EU developers will no longer be subject to Apple’s content policies or revenue sharing model for in-app purchases.

App Store and DMA

That’s the theory… Apple announced its DMA-inspired policy updates last month. But they did not convince and many developers criticized the company bend the law and do the exact opposite. One of the strongest was Microsoft: “First steps [para cumplir con la DMA] that Apple has proposed are too restrictive to create a meaningful alternative to the only store available on the world’s largest gaming platform, mobile phones.said Phil Spencer, head of gaming.

General criticism also came from Meta: “I don’t think Apple’s proposal will have any meaning for us, because I think because of the way they implemented it, I would be very surprised if any developer decided to enter the alternative app stores… “They did so difficult and I think it is so contrary to the intent of the EU regulation that it will be very difficult for anyone, including ourselves, to take what he is doing really seriously.said Mark Zuckerberg.

Another of those facing Apple, Epic Games CEO Tim Sweeney, specifically blamed Apple “malicious compliance”a label that has since become the terminology used to describe Apple’s behavior.

And one of the most significant changes for developers who want to run apps without using the Apple Store is the so-called Core Technology Fee (CTF). Under Apple’s new scheme, any developer who accepts the updated terms would have to pay Apple €0.50 per first install per year per user for every install over one million. The fee will be charged regardless of whether the application is free or paid. These new rules open up the option for app developers for the first time You may owe Apple more money than you earned from the app.

This and other proposals are being contested and the EU will have to determine whether they are compliant with the RSV or the standard will be useless and the big tech companies will continue to abuse the industries they control. We announced it the same week Commission fines Apple Music 500 million euros for anti-competitive practices, Spotify settlement. It is a case preceding and parallel to DMA, but all based on the same thing.

And not just Apple. Microsoft with Windows; Google with Android or Meta with social networks are others who take advantage of their dominant position and have to adapt their policies to the new European standard. We’ll see.

Source: Muy Computer

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