Apple says it ‘expects to make’ App Store policy changes due to EU DMA
Apple has bowed to the inevitable and said it “expects to make” App Store policy changes to comply with EU’s Digital Markets Act (DMA).
Apple has bowed to the inevitable and said it “expects to make” App Store policy changes to comply with EU’s Digital Markets Act (DMA).
The pan-EU DMA came into application across the bloc . Apple has likely been expecting for months, if not years, to be subject to the new ex ante competition regime — which was first proposed by the Commission at the end of 2020 . But the language change in its filing makes it explicit policy shifts are on the way.
The iPhone-maker has updated the language pertaining to its risk factors in the fiscal year 2023 Form 10-K filing (PDF), with the revised text presenting a shift from the company’s previous position, indicating a more definitive stance on potential modifications to the App Store policies.
Apple said that future changes could also affect how the company charges developers for access to its platforms; how it manages distribution of apps outside of the App Store; and “how, and to what extent, it allows developers to communicate with consumers inside the App Store regarding alternative purchasing mechanisms.”
Apple has bowed to the inevitable and said it “expects to make” App Store policy changes to comply with EU’s Digital Markets Act (DMA).
The DMA is EU lawmakers’ response to Big Tech, as a category — as classic competition law enforcement has repeatedly been shown to be too slow and retroactive to prevent dominant tech giants using exploitative tactics to entrench and expand their market power.
A classic case is the , Apple informed the Commission it expected to fall under the DMA. That was then officially confirmed . The local competition authority forced Apple to let local dating apps use alternative payment technologies, rather than Apple’s own, to take in-app payments from their users following complaints by developers.
The Dutch authority was acting with an eye on the incoming DMA. But where its intervention could only lead to App Store policy shifts that just got applied in the Netherlands, and only for dating apps, the DMA’s impact will be felt across the EU and is not limited to certain types of users. So the impact will be greater.
The deadline for gatekeepers’ compliance with the pan-EU DMA is March 7, 2024. Penalties for infringements can reach up to 10% of global annual turnover — or even more for repeat offences.
Based on reporting by techcrunch.com.