A group of 34 digital organizations, including well-known app makers such as Epic Games and Spotify, recently expressed their discontent with the changes Apple is making to its services in the European Union. In a letter addressed to the European Commission, these organizations raised concerns that Apple’s proposed compliance scheme with the Digital Markets Act (DMA) falls short of meeting the law’s requirements. They fear that this will hinder their ability to provide the benefits of the DMA to consumers promptly.
Apple’s announcement in January of modifications to its iOS operating system, Safari browser, and App Store in the 27-nation EU was viewed as an effort to comply with the DMA, which aims to tackle anti-competitive practices online. Despite this move, the designated “gatekeepers,” including Apple, Google, Amazon, Meta, Microsoft, and ByteDance, need to align with the DMA by March 7, 2022, to avoid potential fines.
Concerns Over New Charges
The most prominent change announced by Apple was the opening of its App Store to rival apps and allowing alternative payment services on iPhones. However, app developers opting for these options would be subject to a new “Core Technology Fee” by Apple, charging 50 euro cents ($0.54) per download for apps surpassing one million downloads. This cost has incited backlash from developers like Epic Games, who argue that it is excessive and benefits Apple rather than fostering competition in the digital market.
The digital companies and associations contend that Apple’s new terms not only undermine the essence of the DMA but also defy its provisions. They warn that if these terms remain unchanged, they will make a mockery of the regulatory efforts by the European Commission and EU institutions to promote fairness and competitiveness in digital markets. Critics doubt whether Apple’s adjustments will genuinely enhance consumer choice and competitiveness in the digital space.
When approached for comments on the letter, the European Commission assured that the compliance measures proposed by gatekeepers, including Apple, would be thoroughly assessed following the March 7 deadline. A spokesperson emphasized the importance of a comprehensive analysis that considers all aspects of compliance, rather than merely relying on initial announcements. The Commission affirmed its commitment to closely monitoring companies’ adherence to the DMA and vowed to take enforcement actions if necessary.
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