EU breaks up App Store: Apple warns of “significant negative effects”

Apple is preparing for drastic changes through the digital markets law in Europe. The group will have to make “further business adjustments” to the App Store in the future in order to comply with the rules of the Digital Markets Act (DMA), which take effect from March 2024, it says in a statement Submission to the US Securities and Exchange Commission (SEC).. This may lead to changes in the fees charged by developers for access to iPhone & Co, explains Apple in the “Business Risks” section. If Apple’s commission on in-app purchases is reduced or completely “eliminated” as a result, this could have a “significant negative impact” on the business, the company warns.

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Accordingly, Apple is currently trying to protect as many areas as possible from regulation. As recently became known, one tactic was to practically split up its own products: Apple not only offers a Safari browser and a single App Store, but three browsers and five App Stores for different operating systems, the company argued. This should prevent the App Store on iPads and Macs 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 fall under regulation.

Apple is currently planning to appeal this cross-platform App Store classification by the EU Commission to the General Court of the European Union, reported the financial news agency Bloomberg on Friday with reference to informed persons. The company also intends to address iMessage verification. The EU is currently investigating whether Apple’s messaging service is missing from the new rules – and would therefore have to open up to other messengers. It recently became known that Google and major network operators such as Telekom have spoken out in favor of regulating iMessage.

The law on digital markets could radically break up Apple’s traditionally closed platforms and services in particular: As things stand, the iPhone operating system iOS, the App Store and the Safari browser fall under the new EU rules. Whether this also applies to iPadOS and iMessage is still being checked.

The possible consequences are massive: According to the rules, Apple must allow sideloading and alternative app stores on the iPhone – until now this was unthinkable. In addition, the company can no longer require the use of its own payment interface for in-app purchases. In addition, the group automatically earns up to 30 percent on every in-app purchase and in-app subscription of digital content – a multi-billion dollar business. Just like Google, Apple also tried in the first few countries to collect its commission on in-app purchases regardless of the payment interface: providers who bill in-app purchases directly should also pay commission – up to 27 percent. In the Netherlands, Apple is already offending regulators with this strategy, who apparently classify the “inexplicably high fee” as anti-competitive.


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