Latest news! On January 25th, Apple announced on its official website that significant updates to the iOS system, Safari browser, and App Store will be implemented in the EU region to comply with the European Union's Digital Markets Act (DMA).
Screenshot taken from Apple's official website
Specifically, this reform will allow customers to download software from outside the Apple App Store for the first time. People will also be able to use other payment systems and it will be easier to choose a new default web browser. In addition, iOS App in the EU region will reduce transaction fees for developers (as a percentage), from the original 30% to 17%, or from the discounted 15% to 10%. On the basis of reducing transaction fees, Apple will charge additional payment processing and core technology usage fees.
EU users can download applications through third parties
The 30% apple tax has also been lowered
The most eye-catching aspect of Apple's reform this time is undoubtedly to allow users to download software to their iPhone for the first time without using the App Store. However, Apple also emphasizes that opening up third-party app stores does not mean completely abandoning security, and will still control app distribution and review all applications.
In the EU region, Apple will introduce new control options that allow users to choose to default to using third-party contactless payment apps or alternative app markets. However, for apps that use alternative payment processing methods, Apple cannot provide refunds, and its ability to provide support in the event of customer issues or fraud will also be limited.
IOS users can now set third-party web browsers (instead of Safari browsers) as their default browser. According to the Digital Market Act (DMA), Apple will also introduce a new selection interface, which will be displayed when users first open Safari browser in iOS 17.4 or later versions. This interface will prompt EU users to select the default browser from the options list.
In addition, the new reform abandons the maximum 30% commission that Apple has imposed on developers since the launch of the Apple App Store in 2008. Now they only need to pay a 17% commission to Apple in app sales, and after one year, the commission ratio will decrease to 10% for most developers and subscribers. Apple has not modified its commission structure outside of the European Union.
However, it should be noted that while lowering fees, Apple has introduced two additional fees. One is to impose a 3% payment processing fee on applications that use the Apple in app system, and the other is to impose an installation fee of 0.50 euros per app for software that has been installed more than 1 million times, whether through the Apple Store or third-party installation, this fee applies. This also means that app applications sold outside the Apple App Store do not require payment of any other commission, only a fee of 0.50 euros.
Will Apple also bow down to the United States and Japan?
The Chinese market, which loves to buy apples, is "not blessed with enjoyment"
According to The Paper, AppStore has always charged developers a handling fee of up to 30% of their sales, becoming a key component of the company's software services business. According to UBS Group's previous forecast, AppStore contributed a quarter of Apple's revenue from its services business; According to Apple's fourth quarter results for the fiscal year 2023, as of September 30, 2023, announced in November last year, the quarterly revenue of the services business was $21.35 billion, which means that the AppStore received approximately $5 billion in revenue for that quarter.
According to Caixin, previously, the European Union passed the Digital Markets Act in 2022, aimed at curbing so-called anti competitive behavior by technology companies. Although the Digital Marketplace Act also applies to Google, unlike Apple's iOS devices, Google's Android smartphones allow users to install applications outside of the Google Play Store, thus Google itself complies with this element of the law.
This is not the first time Apple has compromised with the European Union. According to Southern Metropolis Daily, the European Union passed a bill in October 2022, which stipulates that the universal USB Type-C interface will be used for all mobile phones, tablets, and cameras in the EU region starting from December 2024. In September 2023, Apple announced at its new product launch that all iPhone 15 phones have switched to USB Type-C interfaces.
According to the Beijing News, Chris Smith, a senior writer in the consumer electronics industry, commented that the EU may be the first to open sideloading for iPhones, but it will not be the last, after the EU has a special version of the app store. Japan and the United States are considering similar legislation. "I wouldn't be surprised if the EU App Store version that Apple is preparing will eventually be launched globally." According to media reports, Japan is formulating regulations requiring technology giants such as Apple and Google to allow third-party app stores to make payments on their mobile operating systems to curb their abuse of their dominant position in the Japanese market.
However, similar situations will not occur in the China region for the time being. A reporter from the Beijing News asked if the Apple App Store in China may also open, and a technical consultant responded that there is currently no such situation. "Everything depends on the official website." It is worth noting that the latest data from IDC shows that in 2023, Apple will replace Vivo with a market share of 17.3%, becoming the first domestic market to have the highest annual shipment volume.