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Posts tagged with "DMA"

Reuters Reports that Apple’s New EU Developer Terms May Avoid Further Penalties→

Reuters reports that Apple is on the brink of satisfying EU regulators with the changes the company has made to its developer program in the EU:

Apple’s changes to its App Store rules and fees will likely secure the green light from EU antitrust regulators, people with direct knowledge of the matter said, a move that would stave off potentially hefty daily fines for the iPhone maker.

Reuters estimates that those fines, which would be on top of the 500 million euro fine already levied against Apple, could be as much as 50 million euros per day.

No deal is finished until it’s formally announced, but if Reuters’ sources are correct, we should see an announcement from the European Commission in the coming weeks.

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Web Advocates Challenge Apple’s EU Browser Policies→

The EU’s Digital Markets Act requires Apple to allow third parties to offer web browsers with their own browser engines. However, more than a year later, there are no browsers built with Chromium, Gecko, or any other engine in the EU.

At a recent EU workshop on Apple’s compliance with the DMA’s browser requirements, Apple representatives were asked some pointed questions by Open Web Advocacy (OWA), and others about its browser engine policies. OWA, a non-profit that advocates for the open web, raised multiple issues with Apple’s approach to browser engines in the EU that they believe are holding back third-party engines.

One issue is that versions of the same browser with different engines can’t be part of the same app bundle. According to OWA, that effectively means vendors like Google and Mozilla would need to release a new EU-only version of their browsers, starting the process of acquiring users from scratch, which I can’t imagine any browser company would sign up to do voluntarily.

Another issue OWA raised is that there is currently no way for web developers outside the EU who are not associated with the browser makers to obtain browsers with competing engines for testing purposes. That’s a problem that’s been solved with other apps by allowing test versions to be distributed outside the EU. However, as things stand today, OWA says that web developers couldn’t use EU-only browsers for testing even if there were any available.

Other issues were raised, too, but these two strike me as practical impediments to third-party browser engines that can and should be resolved. Apple’s responses to OWA’s challenges focused on privacy and security, which are legitimate factors to consider, but it’s disappointing that more than a year after the DMA took effect, the practical problems raised by OWA and others still haven’t been solved.

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Apple Opens Up New App Distribution Options in the EU, Along with New and Updated Fees

To avoid additional fines, Apple is making several new changes to App Store rules in the EU. Today’s changes are a result of an April ruling by the European Commission that levied a €500 million fine against the company and ordered that it “…remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future….”

The changes are complex and wide-ranging, but among the highlights regarding in-app offers are changes that:

  • allow developers to communicate and promote offers for digital goods and services in their apps, which can steer users to the web, an alternative app marketplace, or another app either inside their app via a web view or native code, or outside their app;
  • permit developers to design these offers themselves, which can include pricing and instructions on how to take advantage of the offers outside the app;
  • allow offers to include links to the destination of the developer’s choice; and
  • prohibits developers from making offers outside the App Store using Apple’s In-App Purchase or StoreKit External Link Account entitlement for reader apps on the same OS;
  • require an informational banner in the App Store that shows it offers external purchases.

Fees have changed for developers offering external purchases, too, and include:

  • an initial acquisition fee of 2% is charged for sales made within six months of a user’s first unpaid installation of an app;
  • a 5% or 13% store services fee depending on the store services used for any purchases made within 12 months of an app’s download;
  • for apps that offer external purchases, a Core Technology Commission (not Fee) of 5% for purchases made within 12 months of installation will be charged;
  • the Core Technology Fee still exists, until the end of the year, for apps that don’t use the external purchase APIs if their installations exceed one million installations on a rolling 12-month basis; and
  • lower fees for Small Business Program developers.

Note, too, that by January 1, 2026, the Core Technology Fee will be replaced by the Core Technology Commission.

Also, developers in the EU will be able to offer their apps not only through alternative app marketplaces, where were already available, but also their own websites. To sell an app via a website, you have to be an Apple Developer in good standing for two consecutive years, obtain a €1,000,000 standby letter of credit, and have an app that has more than one million First Annual Installs on iOS and/or iPadOS in the prior calendar year. As you would expect, developers selling outside the App Store are responsible for managing the purchase process, taxes, and customer service, and failing to do so could result in the revocation of API access by Apple.

All right, that’s a lot and while I’ve tried to boil it down to the core points, there are a lot of details developers should study carefully and understand before taking the plunge of selling their apps outside the EU App Store. The best place to learn more now is from Apple. Start with the developer announcement, which links to more details about the new rules and relevant legal documents. Apple is also offering 30-minute sessions for EU developers to ask questions and provide feedback.

If you’re wondering what Apple thinks of all this, well, it’s not happy. An unnamed spokesperson told CNBC:

The European Commission is requiring Apple to make a series of additional changes to the App Store. We disagree with this outcome and plan to appeal.

It will be interesting to see how this plays out. The fee structure and rules are complex and will need to be studied closely to evaluate the practical effect of the changes. That said, I’m cautiously optimistic that our readers in the EU will soon have more choice than ever, which I’m glad to see.

EU Sets DMA Compliance Deadline in App Store Anti-Steering Dispute

Last month, the European Commission (EC) fined Apple €500 million for violating the Digital Markets Act. Today, the EC issued its full 67-page ruling on the matter, giving Apple until July 23 to pay the fine or face accruing interest on the penalty.

The ruling focuses on Apple’s anti-steering rules, which were the focus of the contempt order recently entered by a U.S. District Court Judge in California. According to the EC:

Apple has not substantiated any security concerns. Apple simply states that some limitations, such as linking out only to a website that the app developer owns or has responsibility for, are allegedly grounded in security reasons. However, Apple does not explain why the app developer’s website is more secure than a third party website which the app developer has taken the conscious decision to link out to. It also does not explain why this limitation is objectively necessary and proportionate to protect the end user’s security and therefore has not provided any adequate justifications in this regard.

(EC ruling at p. 22). In other words, “the App Store isn’t more secure than the web just because you say it is.”

Apple has until June 22 to bring the App Store into compliance with the EC’s ruling or face additional periodic penalties (EC ruling at p. 67). As we reported in April, Apple has said that it intends to appeal the EC’s ruling.

EU Fines Apple €500 Million for Digital Markets Act Violations

In a press release issued today, the European Commission (EC) announced that it has fined Apple €500 million for violations of the EU’s Digital Markets Act. The EC also fined Meta €200 million.

The EC’s press release explains that:

Under the DMA, app developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases.

The Commission found that Apple fails to comply with this obligation. Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.

In addition to the fine, the EC has ordered Apple:

…to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future…

The Commission also closed its investigation into Apple’s user choice obligations under the DMA, finding that the company’s browser choice screen and interface for setting new default apps to satisfy the DMA’s requirements.

An unnamed Apple representative speaking to CNN criticized the fine:

A representative for Apple said the fine is “yet another example of the European Commission unfairly targeting” the company and forcing it to “give away (its) technology for free.” It added that it plans to appeal the decision.

We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way.

The EC’s fines aren’t surprising given the long history and tenor of the investigation. What remains open as a point of potential future disputes is Apple’s compliance with the EC’s new order. As stated by its representative to CNN, Apple also plans to appeal today’s decision.

AltStore PAL Releases AltStore Classic for EU iPhone Users→

AltStore PAL, the alternative app store for iPhone users in the EU, celebrated its first anniversary today with a whopper of an update. AltStore PAL 2.2 now includes AltStore Classic as one of its catalog of apps. That’s right, a store within a store, which allows users in Europe to sideload hundreds of non-notarized apps.

If this sounds odd, it is, but there’s a method to the madness. AltStore Classic allows users to install DolphiniOS, an emulator that uses JIT (Just-In-Time) compilation, which is necessary to emulate more recent games and isn’t allowed by Apple on iOS out of the box. Alongside AltStore PAL 2.2, the AltStore team released StikDebug, an AltStore PAL app that allows any app sideloaded with AltStore Classic to use JIT.

I’m in the U.S., so I haven’t tried AltStore Classic, but judging from what I’ve seen on Reddit, JIT can make a big difference for emulators. EU users can read more about the update to AltStore PAL and AltStore Classic in the update’s release notes.

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Opening iOS Is Good News for Smartwatches→

Speaking of opening up iOS to more types of applications, I enjoyed this story by Victoria Song, writing at The Verge about the new EU-mandated interoperability requirements that include, among other things, smartwatches:

This is a big reason why it’s a good thing that the European Commission recently gave Apple marching orders to open up iOS interoperability to other gadget makers. You can read our explainer on the nitty gritty of what this means, but the gist is that it’s going to be harder for Apple to gatekeep iOS features to its own products. Specific to smartwatches, Apple will have to allow third-party smartwatch makers to display and interact with iOS notifications. I’m certain Garmin fans worldwide, who have long complained about the inability to send quick replies on iOS, erupted in cheers.

And this line, which is so true in its simplicity:

Some people just want the ability to choose how they use the products they buy.

Can you imagine if your expensive Mac desktop had, say, some latency if you decided to enter text with a non-Apple keyboard? Or if the USB-C port only worked with proprietary Apple accessories? Clearly, those restrictions would be absurd on computers that cost thousands of dollars. And yet, similar restrictions have long existed on iPhones and the iOS ecosystem, and it’s time to put an end to them.

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Epic Games Announces iOS Store Expansion in the E.U.→

The Epic Games Store, which is available in the E.U. on iOS as a result of the Digital Markets Act and globally on Android, is expanding.

During a press briefing, Epic’s Tim Sweeney said:

Our aim here isn’t just to launch a bunch of different stores in different places, but to build a single, cross-platform store in which, within the era of multi-platform games, if you buy a game or digital items in one place, you have the ability to own them everywhere.

As part of the store expansion, The Verge’s Lauren Feiner reports that Epic will cover Apple’s E.U. Core Technology Fee charged on free games for the first 12 months. Epic will also offer monthly free games, and eventually, weekly freebies. The new games aren’t available just yet, but should be soon.

It’s good to see Epic expanding its offerings on iOS and Android. Alternative marketplaces have grown slowly in the E.U., but with Epic willing to reduce the financial risk of Apple’s Core Technology Fee, we should start seeing Epic’s store expand more rapidly.

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EU Seeks Input on iOS and iPadOS Interoperability

In September, I wrote about two interoperability proceedings commenced by the European Commission (EC) against Apple. As I wrote then:

In a nutshell, the EC is unhappy with connectivity between iOS and third-party devices and plans to tell the company how to comply. The second part requires Apple to set up a process for third parties to request connectivity with iOS.

Late yesterday, the EC published two follow-up documents requesting input from EU citizens and companies on the interoperability proceedings. DMA.100203 seeks feedback on these technical aspects:

  • The effectiveness of the measures in practice: if implemented, will the proposed measures result in effective interoperability with iOS for each feature
  • The completeness of the measures: if anything else is needed to ensure effective interoperability for the relevant feature
  • Feasibility of the measures: would there be any difficulties or obstacles in implementing each relevant proposed measure in your connected device or app
  • Timelines: is the proposed timeline for Apple to implement each proposed measure achievable?

Under DMA.100204, the EC is requesting input on the following:

  • Is the mapping of existing frameworks adequate to provide developers with prior information to submit a request and to obtain interoperability?
  • Are the proposed timelines adequate to establish a timely and predictable process that takes into account the specificities of the varying technical needs?
  • Are the proposed measures on communication and feedback allowing adequate developers’ involvement in the process?
  • Are the transparency measures allowing developers to be sufficiently informed about the process and its outcome?
  • Would the proposed process ensure a fair treatment of the requests and accountability for Apple’s decisions?
  • Are the proposed measures adequate to ensure that the request process delivers interoperability solutions that are effective and future-proof?

The deadline for commentary on both EC requests is January 9, 2025.

In response, Apple published a document yesterday explaining how it believes Meta and other companies will “weaponize interoperability,” undermining user privacy and security. As Apple puts it (emphasis in original):

If Apple were to have to grant all of these requests, Facebook, Instagram, and WhatsApp could enable Meta to read on a user’s device all of their messages and emails, see every phone call they make or receive, track every app that they use, scan all of their photos, look at their files and calendar events, log all of their passwords, and more. This is data that Apple itself has chosen not to access in order to provide the strongest possible protection to users.

Interoperability is shaping up to be the field where the fight over opening up more of iOS and iPadOS will be fought. There are places where third-party devices, like many wearables, are at a disadvantage when connecting to iOS. However, deep system-level interoperability necessarily raises potential privacy and security concerns. This isn’t going to be an easy balance to strike, and a lot is at stake, which is why I expect these EC proceedings to be the biggest DMA story of 2025.