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Apple is opening a small crack in the iPhone’s digital fortress as part of tightening European regulations that seek to give consumers more choice, but at the risk of hackers finding personal information stored on the device. They are creating new ways to steal information and financial information.
The overhaul, which takes effect Thursday only in the European Union, is the biggest change to the iPhone App Store since Apple introduced the concept in 2008. Among other things, people in Europe can download iPhone apps from stores not operated by Apple and have an alternative method of paying for in-app transactions.
European regulators have announced that Big Tech’s “digital gatekeepers” will be making it harder for consumers and businesses to become a more dominant force in their daily lives, thanks to reforms mandated by the Digital Markets Act (DMA). They expect to see less control over the products and services they use.
The measures came days after EU regulators fined Apple nearly $2 billion (1.8 billion euros) for obstructing competition in the music streaming market.
Apple slams new regulations that pose unnecessary security risks to iPhone users in Europe, expose them to further fraud and other malicious attacks from apps downloaded from outside the ecosystem, and expose users to more scams and other malicious attacks from apps downloaded from outside the ecosystem. This is raising concerns about even more malicious services selling illegal drugs. Content that the company has long banned from the App Store.
Despite Apple’s efforts to maintain security protections while adhering to the 27-nation bloc’s new rules, the company said, “The changes required by the DMA will reduce the protections Apple users outside the EU can rely on and the protections Apple users outside the EU can rely on.” It is inevitable that there will be gaps between the protections that can be relied upon.” Protection will continue to be available to users in the EU. ”
But some smaller technology companies, including music streaming service Spotify and video game maker Epic Games, have called Apple’s DMA compliance approach a sham that “mocks” the regulatory intent. It’s attacking.
“Rather than creating healthy competition and new options, Apple’s new terms will erect new barriers and strengthen Apple’s hold on the iPhone ecosystem,” said Spotify, Epic and more than 20 other companies. In a letter to the European Commission dated March 1, the companies and their partners wrote: The EU’s executive arm that oversees the DMA.
Epic, the company behind the popular game Fortnite, also claims that Apple has already brazenly violated the DMA by refusing to release an alternative iPhone app store in Sweden. Epic has blocked Apple’s attempts to compete in a scathing post by CEO Tim Sweeney, who spearheaded a largely unsuccessful antitrust lawsuit against the iPhone App Store in the US. He claimed that it was in retaliation for his criticism.
Regulators have so far not objected to changes Apple is making to iPhone software updates tailored to comply with DMA.
Europe’s changing digital landscape is forcing other tech giants like Google and Facebook to change, but the new regulations strike at the heart of Apple’s philosophy of maintaining ironclad control over every aspect of its products. It is.
Invented by the late co-founder Steve Jobs, this “walled garden” approach starts with the careful design of the hardware and extends to all the software that powers the device and runs on it. monitor commercial transactions.
This approach built an empire with approximately $400 billion in annual revenue. A measure of Apple’s success is directly attributable to the trust it has built through decades of careful stewardship of popular products such as the iPhone, iPad, Mac, and Apple Watch.
Even Epic’s Sweeney admitted that one of the reasons he uses the iPhone is because of the strong security measures Apple has put in place to thwart hackers and protect customer privacy. This became clear during testimony in a May 2021 trial, when a US judge ruled that the App Store is not a monopoly.
In the ruling, the judge asked Apple to begin allowing links to external payment options within iPhone apps in the United States. The company began allowing this requirement earlier this year after the U.S. Supreme Court declined to hear an appeal on the issue.
Apple still does not allow alternative iPhone app stores in more than 100 countries outside the US and EU.
European regulators appear convinced that the benefits to consumers from increased competition outweigh the increased security risks.
One potential positive is that if competing stores charge lower fees than the 15% to 30% fees Apple has charged for years, the price of digital transactions within apps will drop.
But critics question whether that will ever happen. That’s because Apple still plans to charge after app downloads reach a relatively low threshold, setting up another hurdle that will make it difficult for alternatives to make significant inroads in Europe.
For Apple’s part, the security issues uncovered by DMA are so alarming that government agencies, especially those involved in defense, banking, and emergency services, are ensuring that employees using iPhones are blocked from accessing them. He claims to have heard requests to make it possible. Access distributed apps from outside Apple’s walled garden.
“All of these agencies recognize that sideloading (downloading apps from outside the App Store) can compromise security and put government data and devices at risk.” Apple stated.
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