EU warns Apple: Fix App Store, or face harsh penalties under new rules
New Delhi : The European Union is flexing its muscles, warning Apple that its tweaked App Store policies better fall in line with the bloc's new Digital Markets Act (DMA) or face hefty consequences. The DMA aims to create a fairer and more competitive digital landscape, and Apple's walled garden approach has long been a thorn in the EU's side.
Key changes Apple has made to appease the EU:
Starting in March, developers will be allowed to offer their apps through alternative app stores on iPhones and iPads. This is a major shift from Apple's previous requirement that all apps be downloaded through the official App Store.
Developers can also opt out of using Apple's in-app payment system, which currently charges a commission of up to 30%. This could save developers a significant amount of money, especially for those with subscription-based apps.
However, critics argue that Apple's new fee structure still isn't fair. The company is still planning to charge a "core technology fee" of 50 euro cents per user account per year to developers who choose to use alternative app stores and payment systems. Additionally, Apple will continue to require all apps to be submitted for review to ensure they meet its security and privacy standards.
The EU is taking a hard line, and if Apple's proposed solutions don't meet their expectations, they're prepared to take "robust action," which could include fines of up to 10% of Apple's global annual revenue.
This is a big moment for the tech industry, and it's likely to have a ripple effect beyond just Apple. Other tech giants, such as Google and Amazon, are also facing scrutiny from the EU over their anti-competitive practices. The outcome of this battle could set a precedent for how tech companies operate in the future.