American technology giant Apple has recently announced changes it is bringing to iOS, Safari, and the App Store to comply with the Digital Markets Act (DMA) in the European Union (EU). Coming in March with iOS 17.4 update, the changes would allow iPhone users to install third-party app marketplaces, change default web browsers, and set preferred payment methods other than Apple’s own.
While the changes were expected to be welcomed by app developers, Apple has faced criticism by major app makers and service providers since its announcement. Developers that have criticised Apple in the past for its unfair commission policy on iOS app development have called the new changes not good enough to uphold the new regulations.
Spotify CEO and founder, Daniel Ek, in a post on X (formerly Twitter) said that Apple’s new changes in the EU is a “monopoly under a different mask.” He further added that “by inventing a new tax system to replace the old, Apple mocks the spirit of the law and the lawmakers who wrote it.”
Similarly, Epic Games founder and CEO Tim Sweeney posted that Apple is forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA regulations.
“Epic has always supported the notion of Apple notarization and malware scanning for apps, but we strongly reject Apple's twisting this process to undermine competition and continue imposing Apple taxes on transactions they're not involved in,” wrote Sweeney.
Apple in its proposed changes said that iOS app developers will be able to select two additional payment processing options on its App Store in the EU. Developers can either choose Payment Service Providers (PSPs), letting users complete transactions within their app, or they can redirect users to an external webpage to complete a transaction. However, developers who choose PSPs and link-out processes will have to pay a commission to Apple for using the App Store platform.