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The European Union’s Digital Markets Act (DMA) is expected to come into effect in March, significantly loosening Apple’s control over the types of apps iPhone users can download and install. For the first time in iPhone history, users will be able to officially download apps from outside the App Store. Additionally, developers will be able to launch third-party app stores. Yes, Fortnite is finally returning to his iPhone via the Epic Games Store app, but only for European users.
Of course, Apple isn’t going to let its huge revenue stream sit idle. In other words, developers looking to avoid Apple’s 30% commission rate are in for a bad awakening. As we recently covered, Apple will be introducing a variety of new fees for developers looking to take advantage of the App Store’s new environment.
What’s interesting about the new DMA is that, apart from Apple’s efforts to avoid losing significant app revenue, Apple has shown considerable resistance up front. Apple has worked hard in recent years to block the new EU law, but ultimately failed to convince lawmakers to reverse course.
Phil Schiller talks about new DMA rules
To this end, Apple’s Phil Schiller recently fast company And he made clear why Apple remains vehemently opposed to DMA. As you can imagine, the crux of Mr. Schiller and his Apple position is that DMA will ultimately harm consumers insofar as it opens up a Pandora’s box of security, privacy, and safety issues.
Regarding malicious software, Schiller emphasized that Apple will continue to notarize iPhone apps and screen them for malicious code.
The report states:
However, it’s important to note that this notarization process isn’t as detailed as the App Store’s traditional vetting, which also checks things like whether your app follows content rules. Still, this notarization should be enough to stop malicious apps that try to imitate real apps (e.g., Facebook or Starbucks apps) from being installed on a user’s girlfriend’s iPhone.
Schiller himself explains that users can choose which app marketplace to use by default, and no app marketplace can download apps to a device without the user’s permission.
“You can now go to your settings to see which marketplaces you have approved or turn off approvals,” Schiller said. “If you’re worried later, you can see which apps you installed from that particular marketplace.”
Beyond that, the new DMA will no longer give Apple as much say over the types of apps that can be downloaded.
“Ultimately, there are things we don’t allow in the App Store that we don’t think are safe or appropriate,” Schiller explained. “It is not our responsibility to determine whether other marketplaces have the same conditions or restrictions.”
In other words, apps that previously might not have appeared on the App Store, such as apps with violent or adult content, will now be available for download. Apps featuring hateful content and political disinformation could also be made available for download.
DMA is effectively a double-edged sword. It gives developers and users more freedom, but if we take Apple’s concerns at face value, that freedom could come at the cost of user safety.
Apple is doing everything it can to protect consumers
Apple said in a press release a few weeks ago that it has implemented more than 600 new APIs for things like alternative browser engines and payment processing.
The press release reads:
New options for processing payments and downloading apps on iOS open new avenues for malware, scams, illegal and harmful content, and other privacy and security threats. That’s why Apple has implemented safeguards such as notarizing iOS apps, licensing marketplace developers, and disclosing alternative payments to reduce risk and provide the best and most secure experience possible for users in the EU. It is being introduced. Even with these safety measures in place, many risks remain.
Nevertheless, there are limits to what Apple’s new safety measures can accomplish.
Schiller said that over the years, Apple has received “a lot of feedback from families and governments about what it needs to do to either disallow certain types of objectionable content in the App Store or give users control over it.” I have digested the opinions of Gain experience in determining what is best for you. And we have rules about that. ”
And these time-tested rules are weakened in third-party marketplaces, Schiller added, increasing the “risk for users and their families to encounter objectionable content and other experiences.”
DMA will not have a negative impact on Apple’s finances
Incidentally, analysts don’t think the EU’s new DMA will have a noticeable impact on Apple’s revenue. To this end, Morgan Stanley issued the following memo a few months ago:
Importantly, the changes proposed in the Digital Markets Act (DMA) are regulator-driven rather than consumer-driven. From a consumer perspective, we believe there is little demand for App Store alternatives given the unparalleled security, ease of use (centralization), and reliability that the App Store provides. According to the Fall 2022 Smartphone Survey, less than 30% of iPhone owners are very likely to purchase a mobile app directly from the developer’s website rather than the App Store.
An EU-compliant version of iOS will arrive in March with the release of iOS 17.4.
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