The European Union’s antitrust chief Margrethe Vestager has warned that Apple’s new App Store fees, mainly the Core Technology Fee, could put the company in breach of the newly instated Digital Markets Act (DMA). Apple could risk new fines if the fee is deemed as a point of friction for developers, Vestager has said in a new interview with Reuters.
Vestager says that the EU is closely watching how Apple and other big tech companies comply with the DMA, which went into effect a few weeks ago. The EU won’t hesitate to investigate Apple over the new structure of App Store fees the company has introduced with the iOS 17.4 update, with Vestager hinting that Apple is deliberately making it harder for users and developers to take advantage of the DMA.
There are things that we take a keen interest in, for instance, if the new Apple fee structure will de facto not make it in any way attractive to use the benefits of the DMA. That kind of thing is what we will be investigating,
EU antritrust chief Margrethe Vestager
The controversial Core Technology Fee is a new commission that Apple is introducing for developers who agree to the App Store’s updated business terms, allowing them to build alternative app marketplaces and more. The Core Technology Fee stipulates that developers have to pay Apple pay €0.50 for each app installed per year after the first one million downloads. The fee has come under fire from many developers, who argue that it could bankrupt small developers who see their apps become popular with European iPhone users.
Vestager also criticized Apple’s apparent scaremongering efforts that disparage users from downloading apps from outside the App Store by claiming that installing apps this way could introduce serious security risks. The EU chief rejects the notion that the DMA should be held as the main culprit behind any security vulnerabilities that could arise, adding that the platform’s security remains the responsibility of Apple and other big tech gatekeepers.
I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA. The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide.
EU antritrust chief Margrethe Vestager
Many developers, including Epic Games and Spotify, have been critical of how Apple is implementing DMA regulations on iOS. In the face of these criticisms, Apple maintains that it’s working per the DMA to the best of its abilities, but that the company is working with the users’ best interests in mind ahead of developers’ needs. Apple also revealed that it’s working to find a solution for the new App Store fees for small and independent developers who could be at a disadvantage compared to the bigger ones.
Apple has begun taking its first steps to comply with the DMA with the launch of iOS 17.4. The update introduces significant changes to the iPhone’s app ecosystem, including alternative app marketplaces and the ability to download apps directly from websites without the App Store. DMA-imposed changes won’t stop there, as Apple plans to make it easier for iPhone users to switch to Android within the next year.
