Europe coming after Apple's App Store with Digital Markets Act
After its victory in mandating USB-C, the European Union's next target is Apple's App Store, and rivals such as Google Play Store.
The Digital Markets Act entered into force on November 1 and will be applicable on May 2, 2023. Its goal is to require companies such as Apple to offer alternatives to allow third-party app stores on its platforms and alternative payment systems.
Gerard de Graaf, an EU official who helped pass the DMA, expects it to affect about a dozen companies. "We expect the consequences to be significant," de Graaf said. "If you have an iPhone, you should be able to download apps not just from the App Store but from other app stores or from the internet."
The official is now in the US to talk with affected companies. "The key message is that negotiations are over, we're in a compliance situation," he said. "You may not like it, but that's the way it is."
Tech companies don't have to comply immediately with the law. Instead, the EU first has to decide which companies are big and established enough to be classified as "gatekeepers."
The EU will announce the group of companies in spring 2023, and they will have six months to comply with the law.
Some provisions of the DMA would force Apple to allow third-party app stores and side-loading on iPhone, let developers use third-party payment systems, enable users to set a voice assistant other than Siri as their default, and more.
The DMA will also prohibit developers from giving their apps or products preferential treatment. In Apple's case, this could mean forbidding the company from highlighting its services, such as Apple Music and Apple Arcade, on the App Store.
The DMA is one of many bills making its way out of the EU.
On October 4, 2022, the European Council approved the Regulation on the Digital Services Act. This marks the final step for the DSA to come to life.
The DSA focuses more on online content and moderation, putting additional responsibility on online platforms and tech companies to police content, including reporting and taking down illegal content.
Online marketplaces will also be subject to new transparency rules, and platforms will be required to allow users to opt out of algorithm recommendations based on their history and information.
Since Apple doesn't make a search engine or social media platform, most core elements of its business model will likely remain unchanged under the DSA rules. However, the DSA is much more likely to impact companies such as Meta and Google significantly.
Companies that violate the rules of the DSA could face a fine of up to 6% of their annual global turnover.
Read on AppleInsider
The Digital Markets Act entered into force on November 1 and will be applicable on May 2, 2023. Its goal is to require companies such as Apple to offer alternatives to allow third-party app stores on its platforms and alternative payment systems.
Gerard de Graaf, an EU official who helped pass the DMA, expects it to affect about a dozen companies. "We expect the consequences to be significant," de Graaf said. "If you have an iPhone, you should be able to download apps not just from the App Store but from other app stores or from the internet."
The official is now in the US to talk with affected companies. "The key message is that negotiations are over, we're in a compliance situation," he said. "You may not like it, but that's the way it is."
Tech companies don't have to comply immediately with the law. Instead, the EU first has to decide which companies are big and established enough to be classified as "gatekeepers."
Digital Markets Act
According to the European Parliament, a gatekeeper has to provide browsers, messaging services, or social media and have at least 45 million monthly end users in the EU. They must also have 10,000 annual business users, a market cap of at least 75 billion euros ($82 billion), or a yearly turnover of 7.5 billion euros ($8.2 billion).The EU will announce the group of companies in spring 2023, and they will have six months to comply with the law.
Some provisions of the DMA would force Apple to allow third-party app stores and side-loading on iPhone, let developers use third-party payment systems, enable users to set a voice assistant other than Siri as their default, and more.
The DMA will also prohibit developers from giving their apps or products preferential treatment. In Apple's case, this could mean forbidding the company from highlighting its services, such as Apple Music and Apple Arcade, on the App Store.
The DMA is one of many bills making its way out of the EU.
Digital Services Act
The EU is preparing a similar bill to the DMA called the Digital Services Act.On October 4, 2022, the European Council approved the Regulation on the Digital Services Act. This marks the final step for the DSA to come to life.
The DSA focuses more on online content and moderation, putting additional responsibility on online platforms and tech companies to police content, including reporting and taking down illegal content.
Online marketplaces will also be subject to new transparency rules, and platforms will be required to allow users to opt out of algorithm recommendations based on their history and information.
Since Apple doesn't make a search engine or social media platform, most core elements of its business model will likely remain unchanged under the DSA rules. However, the DSA is much more likely to impact companies such as Meta and Google significantly.
Companies that violate the rules of the DSA could face a fine of up to 6% of their annual global turnover.
Read on AppleInsider
Comments
All the “gatekeepers” will be American
Time to leave? According to the EU change everything you do that makes you unique, that allows you sell tech devices that you make? Maybe a separate iPhone, iPad, and AppleWatch just for the EU, these devices will only have Apple software and nothing else like a game console maybe the only way forward. The other 75% of the world gets the best of the Apple ecosystems the EU just gets pure Apple base software and nothing else.
In short take the iPhone, iPad, and Apple Watch private software wise in the EU sell them to the European public with no pretense of anything beyond Apple software …..
and we are fighting their Ukraine war for them which is causing our inflation to stay sky high
Why is our current government not helping out companies against these wack jobs?
I didn’t vote for Trump but what he is saying about these current idiot people in charge being Ukraine, Europe first and America last rings pretty true….
make a choice
Or is the EU so far communist that they won’t even let people chose ?
honestly I don’t see Putin or China demanding this of Apple… So who are the real communists?
Choice is a good thing but no one is forcing anyone to stop using the App Store. The choice to stick with it will still be there, along with competition for it.
Gatekeepers shouldn't exist.
Digital interoperability isn't new. It's just reaching the mobile platforms now.
Just look at what happened to the carriers and telecommunications infrastructure over the last decade or longer.
This is nothing new. Ten years ago digital lifestyles weren't a booming business and weren't on the radar now they are.
But the DNA and DSA are just two of many upcoming directives. Not all of them by a long shot are technology focused.
Soon, we will see the textile industry get some stringent legislation to guarantee clothing quality. The textile industry is near the top of the list of polluting industries.
We'll also have the batteries directive. Also legislation for repairability and software support (including the option for users to downgrade features that are added as part of updates). Manufacturers will be required to support devices for a set minimum time and make it known to consumers.
why isn’t our current government protecting our companies?
and the point is not if you download third party apps but the fact your phone is able to download those unchecked apps makes everything in your phone open season
In short the EU gets a regional iPhone, iPad and AppleWatch….
The DMA and DSA are there to tackle it.
Why would an app developer pull an app from the app store?
Apple charging too high a commission? Apple not allowing this or that feature? Apple not allowing the app outright?
Those are problems for Apple to resolve. Competition is a central aspect of the EU open market.