Meta and Microsoft, competitors of Apple, are lobbying the European Union (EU) to reject the iPhone maker’s proposal for third-party App Stores on its iOS platform, as they do not comply with the Digital Markets Act, says a new report from the Financial Times (FT).
The DMA is a new EU law that aims to make the digital economy fairer and more contestable by keeping the big tech companies in check. It will ensure that they behave in a fair way and promote more competition and choice, greater innovation, better quality, and lower prices.
According to the FT report, the Cupertino-based tech giant’s proposed DMA-inspired policy changes have been criticized by many as “malicious compliance”. They have been accused of imposing terms that will not allow developers to make more money. For instance, Apple would still charge an additional 27 percent commission on sales outside its ecosystem.
For those unaware, on March 7, 2024, Apple plans to publicly release iOS 17.4 to the EU App Store, which allows developers to sell their apps outside of the official Apple App Store. They will also have access to alternative payment systems if they wish to remain within the Store. However, rivals feel that the new Apple App Store changes favor the company and fail to meet the DMA’s goals, raising antitrust concerns.
“The initial steps [to comply with the DMA] that Apple has put forward are very prohibitive to us actually creating a meaningful alternative to the one store that’s available on the world’s largest gaming platforms, which are mobile phones. So we will continue to work with regulators to open that up,” said Microsoft Gaming CEO Phil Spencer in a statement to the FT.
“I don’t think that the Apple thing is going to have any difference for us because I think that the way that they’ve implemented it, I would be very surprised if any developer chose to go into the alternative app stores that they have,” Meta CEO Mark Zuckerberg said.
“They’ve made it so onerous, and I think, so at odds with the intent of what the EU regulation was that I think it’s just going to be very difficult for anyone — including ourselves — to really seriously entertain what they’re doing there,” he added.
However, Apple, in response to criticism of its EU App Store proposals, said that they had spent a year working with the European Commission on its plans so that it could comply with every requirement, and the result is based on the work of “hundreds of Apple team members who spent tens of thousands of hours”. It also worked to add additional security safeguards for users.
While Apple maintains that it has complied with EU regulations, the EU will have to assess the company’s proposals in light of the DMA’s objectives and take decisive action if it is unacceptable.
