Apple's latest move to change its App Store terms has sparked a firestorm of controversy, with the likes of Meta and Microsoft now urging the European Union (EU) to reject the changes.
The changes implemented in iOS 17.4 enable developers to sell apps outside of Apple's ecosystem and offer alternative terms within the store. However, critics argue that these changes still heavily favor Apple, raising concerns about antitrust issues.
Apple intends to charge developers an additional 27 percent commission if they provide sideloaded apps to the public amidst enforcing the EU's DMA in the region.
This illustration photo shows the Apple app store logo reflected from an iPhone onto the back of an iMac in Los Angeles, August 26, 2021.
Meta and Microsoft Against Apple's New Terms
According to 9to5Mac, both Meta and Microsoft have opposed Apple's new terms, describing them as "onerous" and "prohibitive." Phil Spencer, Microsoft's gaming chief, highlighted the challenges posed by Apple's proposal, claiming that the changes impede the development of meaningful alternatives to the dominant App Store. "So we will continue to work with regulators to open that up," Spencer told the press.
Mark Zuckerberg, Meta's CEO, expressed similar sentiments, describing Apple's terms as "at odds" with the intent of EU regulations and questioning developers' willingness to embrace Apple's alternative app stores. "I would be very surprised if any developer chose to go into the alternative app stores that they have," Zuckerberg said.
Apple's changes are in response to the EU's Digital Markets Act (DMA), which seeks to address concerns about the dominance of Big Tech companies such as Apple. However, critics argue that Apple's changes fail to meet the DMA's goals, prompting calls for additional concessions.
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New Changes Stifling Competition
The Financial Times reports that Meta and Microsoft are actively lobbying the EU to reject Apple's proposals. They believe the changes are insufficient to promote competition and innovation in the mobile app market. The companies are concerned that Apple's terms will perpetuate its dominance, stifling the development of alternative platforms.
Damien Geradin, a lawyer representing Apple-critical developers, stated that app developers are generally dissatisfied with the proposed changes. Many developers see Apple's terms as unfavorable and hesitate to switch to the new ecosystem.
The EU now must assess Apple's proposals in light of the DMA's objectives. While Apple claims that its changes comply with EU regulations, critics say they fall short of addressing antitrust concerns.
The backlash against Apple's App Store policies highlights the growing regulatory scrutiny that big tech companies face. The tech giant is navigating a complex regulatory landscape with the EU poised to levy significant fines against Apple for alleged anticompetitive practices.
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