Apple has maintained tight control over iPhone apps since it first launched the App Store in 2008, but the EU aims to change that. The European Union’s Digital Markets Act (DMA) is forcing Apple to open up iOS software, but its approach may be the most annoying. Some major tech companies, including Mozilla and Microsoft, have expressed dissatisfaction that Apple’s DMA proposal could actually increase the cost of app distribution.
Apple argued that its walled garden was better for security and privacy, but it must comply with the DMA to continue operating in Europe. Apple’s compliance proposal has now been released, but app developers aren’t satisfied. While Apple may nominally give up control of iOS software, its plan will impose new fees on developers that could make it more expensive to do business outside of the walled gardens.
Mozilla is excited by the idea that it could eventually release a version of its browser with a custom engine. Until now, Apple has required all browsers to use the same WebKit engine as Safari. Mozilla spokesman Damiano DeMonte told The Verge that the foundation was “very disappointed” with Apple’s proposal. While it allows other browser engines, the relevant applications must be unique to Europe. According to Mozilla, building and maintaining two versions of Firefox will increase costs.
Spotify doesn’t mince words, with CEO Daniel Ek calling Apple’s plan a “masterclass in distortion.” The company specifically noted that Apple intends to charge developers 0.5 euros per download per year. Developers must also pay Apple a 17% fee for sales made outside the App Store. Spotify says trying to ditch the App Store could actually increase its customer acquisition costs tenfold. Then there’s Microsoft, which reportedly ran into roadblocks a few years ago when it tried to sell Xbox games on the iPhone. Retweeting Ek’s statement, Microsoft Xbox President Sarah Bond called Apple’s DMA proposal “a step in the wrong direction.”
We believe constructive dialogue can drive change and progress for open platforms and greater competition. Apple’s new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plans and work to create a more inclusive future for all. https://t.co/mDRI5KPJf6
— BondSarahBond (@BondSarah_Bond) January 29, 2024
The Digital Markets Act will come into effect in March this year, and Apple is not the only company affected. The law requires so-called “gatekeepers” to operate in a more fair and impartial manner. The European Commission identified numerous gatekeepers in the digital economy, including Google (search), Amazon (AWS), Meta (social media) and YouTube (online video). Apple, as the sole source of iPhone software, is included in this list. The European Commission has not yet approved Apple’s implementation. Still, it’s unclear whether the backlash will change anything.