The EU Commission will examine Apple's new charging scheme for apps. It imposes fees even if customers install software directly on their phones, without using the App Store. This has sparked strong criticism from app providers. The EU has a “definite interest” in measures by gatekeepers that ultimately torpedo the goals of the Digital Markets Act (DMA), Competition Commissioner Margrethe Vestager emphasized to the Reuters news agency. The Dane cited Apple as a specific example. For example, her agency wants to investigate whether the iPhone manufacturer's new fee schedule makes it “de facto unattractive to take advantage of the DMA,” said Vestager.
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Anyone who wants to sell software outside of the App Store or offer in-app purchases themselves will inevitably have to accept Apple's new fee schedule – and thus the so-called “Core Technology Fee”. For the first time, Apple is billing based on app installations: If an app exceeds the limit of 1,000,000 downloads on iPhones within a 12-month period within the EU, the developer must pay 50 cents per year plus tax for all initial installations beyond that . The fee is criticized by both giant and small app providers; The latter worry about suddenly high costs for popular free apps. Apple has indicated that it will make improvements here – how exactly remains open for the time being.
Apple is introducing the Core Technology Fee to mitigate revenue losses due to the competition provisions of the Digital Markets Act. It is now already possible to offer alternative app marketplaces for iOS (from iOS 17.4). In addition, Apple must allow individual iOS apps to be made available for download directly from websites – this function should follow in the next few weeks. However, Apple has imposed high hurdles on app providers and continues to examine all applications.
Vestager warns gatekeepers
Vestager warns the gatekeepers – currently Apple as well as Microsoft, Google, Meta Platforms, Amazon and TikTok parent Bytedance – not to portray switching to competitors as unsafe. Apple has warned several times that opening up iOS poses security risks. The group intends to display conspicuous warning messages when users install an alternative app marketplace or pay for in-app purchases directly from the provider.
Vestager told Reuters that she believes it is “unwise” to portray other services as unsafe. The DMA is there to open the market to other providers. The manufacturer of an operating system must decide for itself how this can be made possible in a secure manner. The competition commissioner noted that she had already received “quite a lot” of feedback from developers – that was also the key to opening investigations.
(lbe)