EU issues stern warning to Apple over app store compliance

EU’s industry head forewarned Apple on Friday that the company will suffer severe repercussions if its changes to the App Store do not comply with the impending laws.

It has stated that it will allow software developers to distribute their applications on Apple devices through alternative app stores in an effort to comply with the EU’s upcoming Digital Markets Act (DMA). Early in March, developers will be able to provide other app stores for iPhones and choose not to use Apple’s in-app purchase system, which presently charges up to 30% in commissions.

Critics contend that Apple’s charge structure is still unfair and may even be in violation of the DMA in spite of these changes. EU industry head Thierry Breton told Reuters in response to questions on Apple’s intentions: “The DMA will open the internet to competition so that digital marketplaces are fair and open.

Already, things are changing. Starting on March 7th, we will evaluate business offers based on outside input.” Breton stressed that the EU will not think twice about taking strong action if the suggested remedies fail.

Developers will still have to submit their apps to Apple for evaluation in order to have any cybersecurity risks or apparent fraud flagged under the new EU standards. Additionally, users of devices in the EU will be able to choose their preferred contactless payment apps and web browsers by default, enabling them to make payments without depending on the Apple Pay system.

Developers would still be required to pay an annual “core technology fee” of 50 euro cents per user account, even if they will have the choice to forego using App Store and payment system. Company made it clear that only developers who choose to accept the new conditions of business are subject to this cost.

According to the company’s calculations, 99 percent of EU developers would either keep or lower the fees they owe Apple under the new rules. With millions of free users, larger companies like Meta and Spotify are expected to be more severely impacted. Neither business has responded to requests for comment as of yet.