Apple Announces Updates for EU to Comply with Digital Markets Act

ios safari app store

Apple has announced significant updates to iOS, Safari, and the App Store to align with the European Union’s Digital Markets Act (DMA).

The updates, which include over 600 new APIs, expanded app analytics, and alternative browser engine functionality, are aimed at complying with the DMA while ensuring user security.

“The changes we’re announcing today comply with the Digital Markets Act’s requirements in the European Union, while helping to protect EU users from the unavoidable increased privacy and security threats this regulation brings. Our priority remains creating the best, most secure possible experience for our users in the EU and around the world,” said Phil Schiller, Apple Fellow, in a statement.

“Developers can now learn about the new tools and terms available for alternative app distribution and alternative payment processing, new capabilities for alternative browser engines and contactless payments, and more. Importantly, developers can choose to remain on the same business terms in place today if they prefer,” said Schiller.

The updates introduce new options for processing app payments and distributing iOS apps, opening potential risks such as malware and fraud. To mitigate these risks, Apple is implementing new safeguards like Notarization for iOS apps and authorization for marketplace developers. Despite these measures, Apple acknowledges that risks related to scams and harmful content remain.

Developers can access information about these changes on the Apple Developer Support page and start testing new capabilities in the iOS 17.4 beta. The new features will be available in the 27 EU countries from March 2024.

The updates to iOS in the EU include new frameworks for creating alternative app marketplaces and browser engines, an interoperability request form for iPhone and iOS hardware and software features, and new controls for selecting third-party contactless payment apps.

Apple’s new protections for EU users include notarization for iOS apps, app installation sheets, authorization for marketplace developers, and additional malware protections. However, Apple highlights its limited ability to address risks associated with alternative browser engines and apps that use alternative payment processing.

Changes to Safari in the EU will see a new choice screen for default browsers, reflecting DMA requirements. In the App Store, Apple is introducing new options for using payment service providers and processing payments via link-out, along with new disclosures and App Review processes.

Under the new business terms for apps in the EU, developers have the option to adopt these terms or stay with Apple’s existing terms. The new terms support alternative distribution and payment processing, with a reduced commission structure and a payment processing fee for using the App Store’s payment processing.

These updates represent Apple’s efforts to balance compliance with the DMA while maintaining user security and privacy in the EU. The changes are set to take effect in March, with Apple providing detailed resources to help users understand and navigate these updates.

Reaction to Apple’s new changes? Epic Games CEO Tim Sweeney, the company behind Fortnite, was not happy about the changes.

“Apple’s plan to thwart Europe’s new Digital Markets Act law is a devious new instance of Malicious Compliance,” said Sweeney on Thursday.

“They are forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA, or accept a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don’t process,” he added.

Sweeney worries about Apple blocking the Epic Games Store. “Apple proposes that it can choose which stores are allowed to compete with their App Store. They could block Epic from launching the Epic Games Store and distributing Fortnite through it, for example, or block Microsoft, Valve, Good Old Games, or new entrants,” he said.

“The Epic Games Store is the #7 software store in the world (behind the 3 console stores, 2 mobile stores, and Steam on PC). We’re determined to launch on iOS and Android and enter the competition to become the #1 multi-platform software store, on the foundation of payment competition, 0%-12% fees, and exclusive games like Fortnite,” detailed the Epic Games CEO.

“Epic has always supported the notion of Apple notarization and malware scanning for apps, but we strongly reject Apple’s twisting this process to undermine competition and continue imposing Apple taxes on transactions they’re not involved in,” said Sweeney, concluding to say “There’s a lot more hot garbage in Apple’s announcement. It will take more time to parse both the written and unwritten parts of this new horror show, so stay tuned.”

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