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Clear as Mud
From the European Commission’s announcement today, “Commission closes investigation into Apple’s user choice obligations and issues preliminary findings on rules for alternative apps under the Digital Markets Act”: Under the DMA, Apple is required to allow for the distribution of apps on its iOS operating system by means other than through the Apple App Store. In practical terms, this means that Apple should allow third party app stores on iOS and apps to be downloaded to the iPhone directly from the web. The Commission takes the preliminary view that Apple failed to comply with this obligation in view of the conditions it imposes on app (and app store) developers. Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee). Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels. So is the entire idea of the Core Technology Fee disallowed? Or is the fee too high? Does Apple need to just make app distribution free and unfettered, no fees, no restrictions? Who knows? The fine is clear — €500M — but what exactly Apple did wrong and should change now is not. ★
From the European Commission’s announcement today, “Commission closes investigation into Apple’s user choice obligations and issues preliminary findings on rules for alternative apps under the Digital Markets Act”:
Under the DMA, Apple is required to allow for the distribution of apps on its iOS operating system by means other than through the Apple App Store. In practical terms, this means that Apple should allow third party app stores on iOS and apps to be downloaded to the iPhone directly from the web.
The Commission takes the preliminary view that Apple failed to comply with this obligation in view of the conditions it imposes on app (and app store) developers. Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee). Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.
So is the entire idea of the Core Technology Fee disallowed? Or is the fee too high? Does Apple need to just make app distribution free and unfettered, no fees, no restrictions?
Who knows? The fine is clear — €500M — but what exactly Apple did wrong and should change now is not.
