Apple’s iOS 17.4: New App Store Shifts

• Apple introduces new App Store terms under iOS 17.4, allowing sales outside its official platform.
• Critics label Apple’s strategy as ‘malicious compliance’ with the EU’s Digital Markets Act.
• A 27% commission on external sales and a €0.50 per install fee raise concerns among developers.

In a bold move with iOS 17.4, Apple has seemingly embraced the European Union’s Digital Markets Act (DMA) by revising its App Store policies. These changes, ostensibly designed to empower developers, allow the sale of apps outside the traditional confines of the Apple App Store. Additionally, developers can now adhere to alternative contractual terms within the store. This development represents a significant shift in Apple’s longstanding App Store model, which has been lauded for its security and criticised for its stringent control over the app ecosystem.

Apple’s 27% Cut and €0.50 Fee Stir Controversy

However, Apple’s compliance with the DMA has not been without its detractors. Accusations of ‘malicious compliance’ have surfaced, suggesting that while the company may be adhering to the letter of the law, it is simultaneously undermining the spirit of the DMA. The core of the controversy lies in the new financial terms imposed by Apple. Despite enabling sales through external channels, Apple will levy a 27% commission on these transactions. Furthermore, the alternative terms for European developers include a burdensome €0.50 per install per year fee. This fee structure is particularly daunting for developers of free apps, raising questions about the viability of these new terms and whether they offer more freedom or present new barriers.

The EU’s Response and the Road Ahead

The European Union has shown a strong interest in Apple’s policy changes. It signals a readiness to take strong action if these adjustments fall short of promoting a competitive and fair digital market. Consequently, as the situation unfolds, the anticipation around the EU’s next steps grows. Many observers believe that this dispute may end up in the courtroom. Additionally, the EU’s decision will depend on how well Apple’s strategy aligns with the DMA’s goals. This crucial determination will greatly affect the future of app distribution in Europe. Meanwhile, the global tech community is watching the debate with keen interest. They are aware that the outcome could establish a new standard for operating digital marketplaces in our interconnected world.

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