Apple Anticipates App Store Policy Changes Due to EU's Digital Markets Act

Apple's Adaptation to EU Regulations

In response to the European Union's Digital Markets Act (DMA), Apple has announced its expectation to implement changes to its App Store policies. The DMA, which was first proposed by the Commission at the end of 2020 and implemented across the EU in May, aims to regulate the competitive practices of tech giants. Apple's recent filing indicates a shift in stance, signifying that the company is preparing for potential modifications to its App Store policies.

Implications for Apple's Business Model

The proposed changes could significantly impact Apple's business model, particularly in terms of how the company charges developers for platform access, manages app distribution outside the App Store, and allows developers to communicate with consumers about alternative purchasing mechanisms within the App Store. The DMA's objective is to proactively regulate dominant tech giants and prevent them from employing exploitative tactics to consolidate and extend their market power.

The DMA's Impact on Tech Giants

The DMA's implementation signifies a proactive approach to competition enforcement, placing a series of obligations on tech giants from the outset. Notably, the DMA prohibits business users from preventing their own offers from reaching end users and forbids the obstruction of third-party app store installations. These obligations are particularly relevant to Apple's App Store.

In July, Apple informed the Commission that it anticipated being subject to the DMA, a prediction that was confirmed in September when the Commission identified seven tech giants, including Apple, as gatekeepers.

Analysts' Views and Future Predictions

Analysts suggest that Apple's change in language confirms impending changes to the App Store and predict that Apple will likely begin to allow third-party app stores on devices in Europe. Despite these changes, they believe that Apple's security, centralization, and convenience will help it remain competitive.

A Glimpse into the Future

Previously, an antitrust intervention in the Netherlands forced Apple to allow local dating apps to use alternative payment technologies. The intervention offered a preview of the potential impact of the DMA on Apple's App Store. Unlike the Dutch authority's intervention, which only applied to the Netherlands and to dating apps, the DMA will have a broader impact, affecting all EU countries and all user types.


>>> Dutch Regulator Challenges Apple's Dating App Pricing Model

Compliance Deadline and Penalties

The deadline for compliance with the DMA is March 7, 2024. Non-compliance can result in penalties of up to 10% of the company's global annual turnover, with even steeper fines for repeat offenses.