The European Union dismantles the App Store: Apple warns of “major negative effects”

Apple is preparing to make sweeping changes with Europe’s Digital Markets Act. The group will have to make “further commercial adjustments” to the App Store in the future in order to comply with the rules of the Digital Markets Act (DMA), which takes effect in March 2024, according to a filing with the US Securities Commission. and Exchange Commission (SEC). This could lead to changes in the fees developers charge for access to iPhone & Co., Apple explains in its “Business Risks” section. The company warns that if Apple’s commission on in-app purchases is reduced or “eliminated” altogether as a result, it could have a “significant negative impact” on the business.

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Apple wants to protect the App Store from public regulation

Accordingly, Apple is currently trying to protect as many areas as possible from regulation. As it became known recently, one tactic was to practically segment its own products: Apple offered not just the Safari browser and one app store, but three browsers and five app stores for different operating systems, the company argued. This should prevent the App Store on iPad and Mac from also falling under the new rules. However, the EU Commission rejected this and classified the App Store and Safari on all Apple platforms as so-called central platform services that are subject to regulation.

Apple is currently planning to file a petition with an EU court against the multi-platform classification of the App Store by the EU Commission, financial news agency Bloomberg reported on Friday, citing people familiar with the matter. The company also intends to address iMessage verification. The EU is currently investigating whether Apple’s own messaging service is missing from the new rules and will therefore have to open up to other messaging programs. Recently it became known that Google and major network operators such as Telekom have spoken in favor of regulating iMessage.

The Digital Markets Act is particularly painful for Apple

The Digital Markets Act could radically break up Apple’s traditionally closed platforms and services in particular: as it stands, the iPhone’s iOS operating system, the App Store and the Safari browser fall under the new EU rules. Whether this also applies to iPadOS and iMessage is still being verified.

The potential consequences are huge: according to the rules, Apple must allow sideloading and alternative app stores on the iPhone – until now this has not been out of the question. Additionally, the company can no longer require the use of its payment interface for in-app purchases. Additionally, the group automatically earns up to 30 percent on every in-app purchase and in-app digital content subscription – a multi-billion dollar business. Just like Google, Apple has also tried in the first few countries to charge its commission on in-app purchases regardless of the payment interface: providers that charge fees for in-app purchases directly must also pay a commission — up to 27 percent. In the Netherlands, Apple is already offending regulators with this strategy, which apparently classifies “inexplicably high fees” as anti-competitive.

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