Apple (AAPL) is preparing to allow alternative app stores on its iPhones and iPads to comply with European Union requirements that will come into force in 2024. In the UK, however, users will still have to rely on Apple apps.
Under the EU’s new Digital Markets Act (DMA), the rules should allow users to install third-party apps on their iOS devices without using the App Store, in which case Apple will not be able to charge its commission of up to 30% on all payments.
The aim is to prevent large platform operators – the so-called gatekeepers – such as Apple, Google and Meta from abusing their dominant market position.
The DMA will take effect in May, but the company has until 2024 to make changes to its ecosystem, Bloomberg first reported.
However, the rules only apply in Europe; there are no signs of similar laws being passed in the UK.
Independent app developers are calling on the EU to ensure that the needs of small app developers are not forgotten in the new rules.
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“It is of utmost importance that the implementation of the DMA enables Europeans to continue to be protected from malware and bad business practices,” said Mike Sax, founder of the App Association.
“A decline in customer confidence in the safety of installing and purchasing apps may have a negligible impact on trusted mega-brands, but it would be devastating for smaller app developers,” he added.
Small and medium-sized app developers, who contribute 210 billion euros to the EU economy every year, are demanding that Brussels ensure fair and non-discriminatory conditions for app stores.
“Our members do not have a portfolio of trusted brands, nor do they have global distribution networks and infrastructure. If our apps are pirated or turned into malware, it will directly harm us and may even pose an existential threat to our business,” Sax said.
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“We need platforms that spend millions on protecting intellectual property, global market access and the privacy of our customers. We need the ‘gate’ in ‘gatekeeper’ to work and keep fraudulent products out and help us reach customers in an environment they perceive as safer than the internet in general,” he added.
The European Union is convinced that strict regulation of large technology companies, the so-called gatekeepers of the digital economy, will lead to more competition and choice, greater innovation, better quality and lower prices.
Chancellor of the Exchequer Jeremy Hunt has confirmed that the government will introduce new laws to protect consumers from fake reviews and subscriptions. The Competition and Markets Authority (CMA) will also be given new powers to crack down on anti-competitive practices in digital markets. However, little to nothing is known about limiting the power of Big Tech companies on the internet.
Regard: The EU Digital Markets Act: What is it and what does the new law mean for you and the big technology companies?
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