The European Union’s Digital Markets Act (DMA) has kick-started, triggering a flurry of developments.
The latest revelation emerged from tech giant Apple, which unveiled a DMA Compliance Report detailing the alterations it must enact to comply with the new regulation.
Among these are both immediate and forthcoming measures, including the implementation of a browser choice screen.
Under the Digital Markets Act, companies like Apple, Meta, and Amazon are categorized as “gatekeepers” based on their revenue and user base.
The legislation prohibits these companies from exhibiting bias toward their platforms or coercing users to remain within their closed ecosystems.
In line with the new EU regulation, Apple users in the European Union would be prompted to choose a default browser from a curated list of options when they open Safari.
Moreover, developers would have the flexibility to choose from various browsers, albeit subject to the acquisition of distinct “entitlements” through formal requests. These changes would be seen by users who have installed iOS 17.4.
Apple is also implementing steps to make its data more portable to outside systems, meaning an iOS user could import their data to an Android phone, for instance.
“Apple is developing a solution that helps mobile operating system providers develop more user-friendly solutions to transfer data from an iPhone to a non-Apple phone,” the statement reads. “Apple is also creating a browser switching solution for exporting and importing relevant browser data into another browser on the same device.”
The mobile operating system changes should go into effect by Fall 2025, while Apple aimed to get the browser switches in effect by the end of 2024 or early 2025.
Apple’s compliance report emphasized the potential negative consequences of certain changes on users and developers.
Apple stated these risks included “new avenues for malware, fraud, and scams, illicit and harmful content, and other privacy and security threats. These changes also compromise Apple’s ability to detect, prevent, and take action against malicious apps on iOS and to support users impacted by issues with apps downloaded outside of the App Store.”
Despite introducing measures like Notarization for iOS apps, the company admitted that they won’t be fully effective in addressing all issues.
Google On Similar Path
On March 7, Google also outlined the changes it would make to comply with the EU’s Digital Markets Act (DMA).
However, Google failed to address a critical element: whether it would impose charges on developers who direct users outside the Play Store to sideload applications, and if so, how much?
Google revealed that it would indeed charge developers even if they don’t use the Play Store, just like Apple did with the App Store. Per new details found in the Play Console help section, the company would charge two new fees: first, an initial acquisition fee of 10% for in-app purchases or 5% for subscriptions for two years. This fee is attributed to the value Play provides in facilitating the initial user acquisition process.
Second, an ongoing services fee is set at 17% for in-app purchases or 7% for subscriptions. This fee includes continuous Play services such as parental controls, security measures, fraud prevention, and the facilitation of app updates.
Developers can opt out of ongoing fees after two years if users agree, but ongoing Play services would no longer apply.
Google stated that “Since users acquired the app through Play with the expectation of services such as parental controls, security scanning, fraud prevention, and continuous app updates, discontinuation of services requires user consent as well.”
With this, Google is taking a page out of Apple’s playbook, which reduced App Store commissions but introduced new fees. Namely, Apple introduced a 3 percent “payment processing” fee for transactions that go through its store.
Also, a new “core technology fee” would charge a flat €0.50 fee for all app downloads, regardless of whether they come from the App Store or a third-party website, after the first 1 million installations.
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