Apple’s Changes Under the Digital Markets Act: What You Need to Know

In a move that has left tech giants like Epic and Spotify divided, Apple is now required to implement changes across its services in the 27 EU member countries as part of the Digital Markets Act (DMA). Here’s what you need to know about these changes:

– Apple has reduced its commission range on processing in-app transactions from 15%-30% to 10%-17%.
– Developers can now offer subscribers an alternative payment option that bypasses Apple’s in-app payment platform, with Apple not taking a cut of these transactions.
– However, developers seeking to avoid the “Apple Tax” will have to pay a “Core Technology Fee” of half a Euro for each annual install of an app after reaching 1 million downloads.
– Epic, Spotify, and 32 other companies have expressed concerns about these changes, stating that Apple is undermining the DMA’s efforts to promote market competitiveness.

App Store developers now have two options for in-app payments:

1. Stick with the status quo and pay Apple 10%-17% of in-app transactions.
2. Offer subscribers an alternative payment platform but pay a half Euro fee for each annual install above 1 million for each app.

The letter from companies and alliances highlights that neither option is DMA compliant and could further solidify Apple’s dominance over digital markets. The new fee structure is seen as a way for Apple to maintain its control over app developers and hinder fair competition with alternative payment providers.

Unless Apple makes significant changes, these companies demand swift action from the European Commission to protect developers and consumers alike. The changes are set to take effect with iOS 17.4, with an EU-imposed deadline of March 6th. The EC will also host an Apple workshop on March 18th to gather feedback on Apple’s compliance with the DMA.

Stay tuned for more updates on how these changes will impact app developers and consumers across Europe!