In order to comply in Europe, Apple has announced several changes so that the App Store on its iPhones finally opens up to competition. But the European Union suggests that it will remain very vigilant.
The European Union does not intend to give up anything against Apple. This is approximately how we could interpret the words of Thierry Breton, European Commissioner for the Internal Market. However, to satisfy the EU, the American firm announced a series of important changes for its iPhones from iOS 17.4, particularly in the App Store.
Indeed, to comply with the Digital Markets Act (DMA), European legislation aimed at combating the anti-competitive practices of web giants, Apple has agreed to open the App Store to competition.
Until now, to download an application, you had to go through the Apple App Store. For their part, the developers had no other distribution solutions. However, to comply with the DMA, Apple announced that alternative application stores would now be authorized. A real upheaval on paper: Apple agrees to open its ecosystem that it has always tried to keep closed. And on a key element in addition.
The European Union keeps an eye on Apple
At first glance, we could then say that the European Union has every reason to congratulate itself on having been able to force Apple to bend in this quest for healthier and more open competition. So why does Thierry Breton display a firm tone?
Requested by Reutersthe European Commissioner first stated that “the DMA will open the doors of the internet to competition so that digital markets are fair and open. Change is already underway. Starting March 7, we will evaluate companies’ proposals[…] “. Above all, it is what he adds next that sounds like a threat against Apple. “If the proposed solutions are not good enough, we will not hesitate to take firm action“.
This statement is not trivial. Since the Apple brand’s announcements, several critics have denounced the conditions in which this opening of the App Store to competition is taking place. Some people believe that Apple remains the big winner from these changes as it still imposes a certain number of discouraging rules for developers wishing to free themselves from the App Store.
The App Store is opening up to competition… Really?
We think in particular of the controversial Core Technology Fee. This new fee will apply to developers whose applications or games exceed one million downloads. Once this milestone is passed, they will have to pay 50 euro cents to Apple each time someone downloads their apps for the first time over a period of 12 months. This new commission will apply even to apps that do not generate any revenue.
In other words, even if Apple can claim that it has relaxed its rules by authorizing developers to distribute their applications on stores other than the App Store, in fact, the latter will still check out if their app is popular in Europe.
Please note that this Core Technology Fee will only be collected from developers who have chosen the new distribution conditions offered by Apple in Europe as part of the DMA. If they want, they can preserve the terms of use they currently have, going only through the App Store. They therefore have the choice, but the decision is not as free as Apple tends to make you believe.
This is why Thierry Breton’s words are interesting to keep in mind. Once the DMA officially enters into force on March 6, 2024, the European Union will look into the measures taken by the web giants to verify that everything is compliant. However, we can imagine that it will continue to cause trouble for Apple.
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