Apple is reportedly preparing to impose new fees and restrictions on software downloads outside the App Store, a move that comes as Europe seeks to implement sweeping legislation aimed at boosting technology competition. This could prove to be a “big test'' for the company's efforts.
The move is part of the Cupertino, Calif., technology giant's efforts to comply with the European Union's Digital Markets Law ahead of a March 7 deadline, while also preserving revenue generated from software downloads on its devices. That's what it means.
As part of its plan, Apple will allow iPhone users to download apps from other app stores, a practice known as “sideloading.”
Nevertheless, Apple will still maintain the power to review all apps downloaded to its devices from other app stores. The Wall Street Journal reportedsaid a person familiar with the company's thinking.
Apple also plans to charge developers who offer downloads separate from the App Store. The size of those potential fees was not immediately known.
This plan applies only to Europe and does not apply to the US market.
If the bill becomes law, Apple's plans could face opposition from software developers who had hoped to offer downloads without such restrictions, the report said. .
It also remains to be seen whether EU regulators will view the plan as complying with EU rules or as an effort to fend off Apple's attempts to loosen its grip on the app market.
To this end, European Commission officials have reportedly met with Apple and other tech companies to discuss compliance plans.
The paper said that included a meeting earlier this month between Apple CEO Tim Cook and Vice President Margrethe Vestager, the European Commission's top antitrust official.
Vestager told reporters at the time that Europe was “ready to pursue non-compliance litigation” if necessary.
The paper's sources said Apple spent “more than a year” developing a plan to deal with European law.
Apple has not yet officially announced the details of its plans, and the magazine said the plans are still subject to change.
The Post has reached out to Apple for comment. Apple stock was flat in trading Wednesday.
Apple has long argued that app downloads must be strictly monitored to ensure user privacy and device security.
Meanwhile, Apple's critics routinely criticize the high fees it charges, including a 30% cut in App Store sales, and insist on promoting its own apps.
The report said several competitors, including Spotify, Meta and Microsoft, have developed potential strategies to exploit the law through their app download services.
The Digital Markets Act targets six companies considered to be the “gatekeepers” of the broader internet: Google's parent company Alphabet, Amazon, Apple, TikTok's parent company ByteDance, Facebook and Instagram's parent company Meta, and Microsoft. There is.
The law, which took effect in November 2022, aims to level the playing field for smaller technology competitors and strengthen data privacy protections for users.
The six companies will be subject to penalties if they do not follow the rules.
Google also faces regulatory scrutiny over its conduct within its Android app store, Google Play. However, the key difference is that Android smartphone users are already allowed to download apps from places other than the Play Store.
Early this week, Mehta said in a blog post. It said it will give Facebook and Instagram users in Europe more choices to comply with the DMA, including “whether or not they want their information to be shared across our services.”
For Apple, the changes in Europe are part of a broader effort by the company to avoid increased regulatory and legal scrutiny of its business practices.
Earlier this month, Apple updated its U.S. App Store policies to allow developers to use third-party payment services as long as they pay Apple a 27% cut.
The company has instituted similar fee structures for external payment methods in the Netherlands and South Korea.
Apple's move comes after the Supreme Court declined to accept an appeal filed as part of the company's long-running battle with Fortnite maker Epic Games.
Epic Games CEO Tim Sweeney, a vocal critic of Apple, slammed Apple's policy change as “outrageous.”
Meanwhile, the Justice Department is said to be preparing a wide-ranging antitrust case against Apple. One report says action could be taken as early as February.
