Apple Opens Doors to External Downloads in EU

• Apple opens EU app distribution, bypassing App Store.
• iPhone devs can use alternatives, avoiding Apple’s payments from March.
• Epic Games’ CEO Tim Sweeney questions legality under Digital Markets Act.

In a strategic move to comply with the new Digital Markets Act (DMA) imposed by the European Union, Apple unveiled its plans on Thursday to allow software developers to distribute their apps to users in the EU through channels outside of Apple’s App Store. The DMA mandates that companies with over 45 million monthly active users and a market capitalization exceeding 75 billion euros must enable app compatibility with rivals and grant users the autonomy to choose pre-installed apps on their devices.

Starting March, developers will have the option to offer alternative app stores on iPhones and can opt out of using Apple’s in-app payment system, which currently charges commissions of up to 30%. This move aims to foster greater competition within the app distribution ecosystem.

However, Apple clarified that developers will still need to submit their apps for review by Apple to ensure cybersecurity and prevent obvious fraud. Additionally, a “core technology fee” will be imposed on major app developers, even if they choose not to use Apple’s payment services.

The decision was met with criticism from Tim Sweeney, the CEO of Epic Games, known for the popular game “Fortnite.” Sweeney, who previously pursued an antitrust case against Apple in the United States, described Apple’s proposed changes as “hot garbage” and questioned their legality under the DMA. He expressed concerns that Apple might still have the authority to block competitors from launching their own app stores.

Apple’s response to the DMA reflects a shift in its App Store policies, which have faced scrutiny in recent years. Notable companies such as Epic and Spotify have long criticized Apple’s commissions and restrictions, claiming they hinder fair competition.

The tools for developers to implement these changes were released on Thursday, with consumers expected to experience the alterations with an update to the iOS operating system in March. The adjustments also include modifications to rules around linking out of apps to third-party websites for payment in the United States, aligning with a recent antitrust ruling brought by Epic against Apple.

In the EU, developers will have the liberty to use a third-party payment processor within an App Store app at no additional cost. Apple will also allow EU iPhone users to select a default web browser and contactless payments app, providing more choices for consumers in these functionalities.

Despite these concessions, developers opting out of Apple’s App Store and payment system will still be subject to a “core technology fee” of 50 euro cents per user account per year. Apple clarified that only large developers would pay this fee, exempting the first 1 million user accounts and waiving the fee for nonprofits, schools, and governments.

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