Apple’s new app store terms have come under fire for what many are describing as ‘malicious compliance’ with the EU’s Digital Markets Act – that is, technically complying with the antitrust law while completely negating its intent.
A new report says that both Meta and Microsoft have now lobbied the EU, asking it to reject Apple’s new terms as “onerous” and “prohibitive” …
Apple’s new app store terms
In iOS 17.4, Apple introduced changes which allow developers to sell their apps outside of the official Apple App Store, as well as to switch to alternative terms if they wish to remain within the store.
However, the company has been accused of ‘malicious compliance’ for imposing terms which make it virtually impossible for any developer to make more money by doing so. Apple would still take 27% commission on sales made outside of its own App Store, and the alternative terms available to European developers include a €0.50 per install per year fee which would be impractical for many apps, especially free ones.
The EU has so far said that it is considering the matter, and is ready to “take strong action” if it decides Apple’s approach is not acceptable. The smart money is on the matter ending up in court.
Meta and Microsoft have already spoken out
Both Meta and Microsoft have already expressed public opposition to the new terms.
“We believe constructive conversations drive change and progress towards 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 plan and work towards a more inclusive future for all.”
Meta:
Zuckerberg suggested that not even Meta will opt for Apple’s new terms in the EU as things stand. “I don’t think that the Apple thing is going to have any difference for us because I think that the way that they’ve implemented it, I would be very surprised if any developer chose to go into the alternative app stores that they have,” the executive said.
“They’ve made it so onerous, and I think, so at odds with the intent of what the EU regulation was that I think it’s just going to be very difficult for anyone — including ourselves — to really seriously entertain what they’re doing there,” he added.
Now lobbying the EU to reject the terms
The Financial Times reports that both companies are now lobbying the EU, asking them to reject Apple’s response, and offer better terms to developers.
Meta and Microsoft want Brussels regulators to extract more concessions that unpick iOS mobile software.
Apple is coming under fire from rivals Meta and Microsoft who say its plans to open up its mobile software to comply with a landmark EU law fail to go far enough, as the iPhone maker faces unprecedented regulatory challenges from Brussels over the coming month […]
“The initial steps [to comply with the DMA] that Apple has put forward are very prohibitive to us actually creating a meaningful alternative to the one store that’s available on the world’s largest gaming platforms, which are mobile phones,” Phil Spencer, Microsoft’s gaming chief, told the Financial Times. “So we will continue to work with regulators to open that up.”
Meta chief executive Mark Zuckerberg has also dismissed Apple’s proposal.
Lawyer calls on developer to do the same
Top comment by Az
Apple’s new app store terms have come under fire for what many are describing as ‘malicious compliance’ with the EU’s Digital Markets Act – that is, technically complying with the antitrust law while completely negating its intent.
In your opinion what is the intent of that legislation. I really want to know.
Is Apple allowed to charge for its IP or not?
And please don’t bring that $99 Developer Fee into this discussion.
Damien Geradin, a lawyer for developers critical of Apple, is calling on small developers to also make their views known to the EU.
After Apple’s announcement, “it took about an hour for app developers to realise they had been screwed”, said Damien Geradin, a lawyer for developers critical of Apple. “Pretty much everyone will stick to the old terms and the DMA will effectively make no difference,” he added.
“What the European Commission is saying to people is: ‘please help us, give us examples of where it doesn’t work’,” said Geradin.
What happens now?
The EU needs to decide whether Apple’s new terms are sufficient to comply with the DMA, and is seeking the views of developers to help it reach a conclusion. Many of us think that the decision will go against the iPhone maker.
Gary Swidler, president of Match Group, which owns Tinder, said the EU’s acceptance of Apple’s plan is “far from assured”.
Independent analyst Eric Seufert said that Apple was “feeling around for what they will be allowed to do under the DMA”. He added: “The question is whether the European Commission accepts this — which I believe they will not.”
In principle, the EU can levy huge fines against Apple for non-compliance, but the most likely outcome is that it will formally reject the terms, and ask for new proposals from the Cupertino company.
9to5Mac composite using images from tswedensky/Pixabay and James Yarema/Unsplash
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