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Written by Fu Yun Chi
BRUSSELS (Reuters) – Apple said on Tuesday developers would be free to distribute apps directly to consumers, making a major concession in the fight to protect the dominance of the App Store on iPhones and other devices in Europe. .
Apple announced changes to comply with the European Union’s Digital Markets Act (DMA), which came into force last week. The changes could undermine the high profit margins and steady revenue Apple has relied on from the App Store, which charges developers up to 30% in fees.
The changes, which only affect the European Union, come amid continued criticism from rivals that Apple’s compliance efforts are insufficient.
Starting this spring, software developers working in Europe will be able to distribute apps to EU customers directly from their websites, rather than through the App Store.
“While the App Store won’t be as freely exploitable, this peace deal from Apple comes with conditions, so it’s likely that the App Store will remain a significant cash cow for some time.” – Market Director Susannah Streeter said. At Hargreaves Lansdowne.
Developers must still meet the terms and conditions set by Apple and be certified developers. Apple also introduced a “core technology fee” of 50 euro cents per user account each year, even if developers choose not to use Apple’s App Store or payment system.
The DMA would rein in Apple, Amazon, TikTok owner ByteDance, Meta Platforms, Alphabet’s Google and Microsoft, creating a level playing field for smaller rivals and ultimately making it more competitive for Europeans. That’s what I’m aiming for.
“To reflect the DMA changes, users in the EU will be able to install apps from alternative app marketplaces on iOS 17.4 and later. Users will now be able to download alternative marketplace apps from marketplace developer websites. ,” Apple said on its website. IOS refers to the software platform that runs Apple’s iPhone and iPad.
The opening of Apple’s ecosystem to Europe, which the company has long guarded as a lucrative “walled garden,” comes at a sensitive time for the tech giant.
iPhone makers are struggling with shrinking profits and weak demand for smartphones in China. In January, Microsoft dethroned Apple as the world’s most valuable company, with investors seeing the company falling behind Big Tech rivals vying for supremacy in artificial intelligence technology. .
Apple shares rose 0.6% on Tuesday afternoon, narrowing its 2024 loss to 10%.
Changes announced Tuesday include allowing developers to launch alternative app marketplaces to instantly offer catalogs made entirely of their own apps.
Developers can choose how to design in-app promotions, discounts, and other deals when inviting users to complete transactions on their website instead of using Apple’s templates.
Under pressure from regulators and the DMA, Apple took a step back from its feud with Epic Games last week, allowing iPhones and iPads to have their own game stores in Europe. DMA violations can result in companies being fined as much as 10% of their global turnover.
Apple also responded to a 1.84 billion euro ($2.01 billion) EU antitrust fine imposed on the company last week for impeding competition with Spotify and other music streaming competitors through App Store restrictions. He also announced that he would appeal.
(1 dollar = 0.9158 euro)
(Reporting by Fu Yun Qi in Brussels; Additional reporting by Noel Randewicz in San Francisco and Jaspreet Singh in Bangalore; Editing by Mark Potter, Matthew Lewis and Jonathan Oatis)
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