Posted by Andrew Go.
In the past, Apple has raised concern that it is limiting competition on its own app store. Apple has tough policies for app developers, such as requiring up to a 30% commission on sales made on apps. It also takes control of pricing of apps and requires developers to agree to not to distribute their apps onto other platforms. This previous controversy has led the Supreme Court to move forward with an antitrust class action against Apple in May 2019.
The saga of antitrust action against Apple continues with the latest of the EU regulations requiring the company to make further changes to its App Store. The regulation, called the “Digital Markets Act” (DMA), which takes effect on March 7th, 2024, would require Apple to allow “alternative app stores to download games, productivity tools and other apps.” Its purpose is to decrease the monopoly of the largest tech companies and encourage competition and creativity. Apple is heavily opposed to these new regulations, citing its “gatekeeper role protects customers from malware, privacy breaches and flawed apps” and that the new legislation “would give hackers and criminals a new path to distribute malware and defraud customers”. It even has tried to circumvent the new legislation by proposing policies like charging developers of free apps who have apps that have been downloaded at least 1 million times in a 1 year period a 50 cent fee for every download. It has also created a process called notarization, which seeks to counteract the freedom that alternative app stores offer from Apple’s strict terms. It will give every app an installation key to inform Apple of its installation date and allows it to scan for malware. It also provides info like descriptions and images of the app, along with the name of the developers.
App developers like Spotify and Epic Games are supportive of the new legislation, with Tim Sweeney, the CEO of Epic Games, saying that “Apple was maintaining the power to block a company like Epic from introducing a games store”. Spotify has also said that “Developers everywhere are continuing to ask other governments to pass their own laws like the D.M.A”.
Andrew is a business major at the Stillman School of Business, Seton Hall University, Class of 2027.