- By Vikas Yadav
- Sat, 27 Jan 2024 10:36 PM (IST)
- Source:REUTERS
Cupertino-based tech giant Apple is in the news for introducing changes across its iOS, App Store, Safari and other verticals induced by the European Union's Digital Markets Act (DMA). And it may face strong action if its App Store modifications fail to meet the upcoming EU regulations in March, industry chief Thierry Breton told Reuters.
Owing to the new rules, Apple will allow developers to distribute their apps via alternative app stores. Plus, software developers can also switch to other payment mediums besides Apple's in-app payment interface, which charges up to 30 per cent amount as commission. But criticisers have argued that the payment model continues to remain unfair and these tweaks may still breach DMA's guidebook.
"The DMA will open the gates of the internet to competition so that digital markets are fair and open. Change is already happening. As of 7 March, we will assess companies' proposals, with the feedback of third parties," Breton said as per the news agency when questioned about Apple's roadmap.
"If the proposed solutions are not good enough, we will not hesitate to take strong action," he added. In the new scheme, developers will have to offer their apps to Apple for monitoring against malware and security risks. Users will also get the option to change default web browsers and contactless payment apps.
According to the report, if developers choose not to use the company's App Store or payment interface, they will still have to pay a "core technology fee" of 50 euro cents per user account every year. These core technology fee will apply to developers who opt into the new business terms, Apple said.
Under the new business terms for EU apps, Apple estimates that 99 per cent of developers would reduce or maintain the fees they owe to Apple, the tech giant said. With free users in millions, tech firms like Meta and Spotify may be affected more than smaller developers.
An EU spokesperson said: "We take note of Apple's announcements ahead of the compliance deadline on 7 March. We do not comment on these announcements. We strongly encourage designated gatekeepers to test their proposals with third parties."