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European Commission Preliminarily Finds That Apple Has Violated the Digital Markets Act

Today, the European Commission informed Apple that based on its preliminary investigation it has determined that the company is in violation of the Digital Markets Act. The EC has also opened a separate non-compliance procedure against Apple over the Core Technology Fee and other changes instituted earlier this year as part of its response to the DMA.

In particular, the EC’s preliminary findings take issue with Apple’s response to the DMA’s anti-steering provisions:

Apple currently has three sets of business terms governing its relationship with app developers, including the App Store’s steering rules. The Commission preliminarily finds that:

  • None of these business terms allow developers to freely steer their customers. For example, developers cannot provide pricing information within the app or communicate in any other way with their customers to promote offers available on alternative distribution channels.
  • Under most of the business terms available to app developers, Apple allows steering only through “link-outs”, i.e., app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract. The link-out process is subject to several restrictions imposed by Apple that prevent app developers from communicating, promoting offers and concluding contracts through the distribution channel of their choice.
  • Whilst Apple can receive a fee for facilitating via the AppStore the initial acquisition of a new customer by developers, the fees charged by Apple go beyond what is strictly necessary for such remuneration. For example, Apple charges developers a fee for every purchase of digital goods or services a user makes within seven days after a link-out from the app.

Apple may respond to the EC’s preliminary findings in writing. A final decision regarding compliance with the law is due by March 25, 2025, the one year anniversary of the beginning of DMA proceedings against Apple.

The EC has also opened a separate investigation regarding Apple’s compliance with Section 6(4) of the DMA, which provides that:

The gatekeeper shall allow and technically enable the installation and effective use of third-party software applications or software application stores using, or interoperating with, its operating system and allow those software applications or software application stores to be accessed by means other than the relevant core platform services of that gatekeeper. The gatekeeper shall, where applicable, not prevent the downloaded third-party software applications or software application stores from prompting end users to decide whether they want to set that downloaded software application or software application store as their default. The gatekeeper shall technically enable end users who decide to set that downloaded software application or software application store as their default to carry out that change easily.

The gatekeeper shall not be prevented from taking, to the extent that they are strictly necessary and proportionate, measures to ensure that third-party software applications or software application stores do not endanger the integrity of the hardware or operating system provided by the gatekeeper, provided that such measures are duly justified by the gatekeeper.

Furthermore, the gatekeeper shall not be prevented from applying, to the extent that they are strictly necessary and proportionate, measures and settings other than default settings, enabling end users to effectively protect security in relation to third-party software applications or software application stores, provided that such measures and settings other than default settings are duly justified by the gatekeeper.

Specifically, the EC says it will investigate whether the Core Technology Fee, the multi-step process for downloading apps from alternative app marketplaces, and the eligibility requirements for running an alternative app marketplace are ‘necessary and proportionate’ under the DMA. The EC also notes that it is continuing to investigate Apple’s process for validating apps and alternative app marketplaces.

None of this is particularly surprising, given the complexities of the provisions Apple put into place in the wake of the DMA. The ‘necessity and proportionality’ of Apple’s changes are, by their nature, subjective determinations. That makes the DMA hard to comply with, but it also leaves ample room for the EC and Apple to negotiate a resolution of their dispute over the DMA. It’s time for the parties to put this dispute to rest.

iPadOS 18 Adds Support for Formatting External Drives→

Nice find by Kaleb Cadle in the first beta of iPadOS 18:

Now in the Files app on iPadOS 18, when we right click or hold press on an external drive and select “Erase”, new options appear for reformatting the drive. Currently, the format options here are APFS, ExFAT, and MS-DOS (FAT), the same format options available in Disc Utility. This is a major improvement for iPad power users and it will be interesting to keep an eye out for new improvements to this functionality and others within the Files app over the course of the iPadOS 18 beta cycle. It seems Apple may be taking a similar tact to the way they incorporated much of the functionality of the Preview app into the Files app via Quick Look, but now with functionality from Disc Utility.

Check out the blog post for a screenshot of what the feature looks like. Given the growing number of handhelds that store their games (or OS) on SD cards that I have to manage for NPC now, I’m very glad I no longer have to use my Mac to reformat those drives.

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Apple Says It Won’t Ship Major New OS Features in the EU This Fall Due to DMA Uncertainty→

A new round in the fight between the EU and Apple has been brewing for a while now. About a week ago, the Financial Times reported that unnamed sources said that the EU was poised to levy significant fines against the company over a probe of Apple’s compliance with the Digital Markets Act. Then, earlier this week, in an interview with CNBC, the EU’s competition chief, Margrethe Vestager telegraphed that Apple is facing enforcement measures:

[Apple] are very important because a lot of good business happens through the App Store, happens through payment mechanisms, so of course, even though you know I can say this is not what was expected of such a company, of course we will enforce exactly with the same top priority as with any other business.

Asked when enforcement might happen, Vestager told CNBC ‘hopefully soon.’

Apple made no comment to CNBC at the time, but today, that shoe has apparently dropped, with Apple telling the Financial Times that:

Due to the regulatory uncertainties brought about by the Digital Markets Act, we do not believe that we will be able to roll out three of these [new] features – iPhone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence – to our EU users this year.

Is it a coincidence that Apple made its statement to the same media outlet that reported that fines were about to be assessed? I doubt it. The more likely scenario is that Apple is using OS updates as a negotiating chip with EU regulators. Your guess is as good as mine whether the move will work. Personally, I think the tactic is just as likely to backfire. However, I’m quite confident that you’ll be hearing from me again about fines by the EU against Apple sooner rather than later.

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The Latest from Magic Rays of Light, Comfort Zone, and MacStories Unwind

Enjoy the latest episodes from MacStories’ family of podcasts:

This week on Magic Rays of Light, Sigmund and Devon share early hands-on impressions of the tvOS 18 developer beta, highlight Apple Original drama series Presumed Innocent, and recap the second season of The Big Door Prize.

Matt decides to stop being so grumpy, Chris may or may not have survived WWDC, and Niléane brings a strange robot to the party.

Our thanks to ListenLater.net for sponsoring Comfort Zone and MacStories. Let them know you heard about them from us to get 20% more credits with your first purchase.

This week, John and Federico explain how they unwind after WWDC and how they think about MacStories’ family of podcasts before recommending a comedy series, action movie, and album.

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Final Cut Pro 2 for iPad and Final Cut Camera Released

Apple announced that today it is releasing Final Cut Pro 2 for the iPad and Final Cut Camera for the iPhone on the App Store. Both apps were announced at the company’s Let Loose event in May. To recap, Final Cut Pro 2 for the iPad adds the following features:

  • Live Multicam, which allows users to record multiple streams of iPhone video using the new Final Cut Camera app;
  • support for creating and editing projects on external storage;
  • camera setting controls like ISO and shutter speed; and
  • new color grading presets, backgrounds, soundtracks, title styles, and more.
Final Cut Camera.

Final Cut Camera.

Final Cut Camera is available to download for free on the App Store and can be used standalone to record video or in conjunction with the iPad’s Live Multicam feature. Videos that you record are stored in the app itself but can be exported to Final Cut Pro or shared with other apps via the share sheet.

I received beta versions of both apps just before WWDC, so I only began testing them recently. Based on that early testing, working with a 25GB project stored on an external drive worked well, at least with my 2TB Samsung T9 SSD, which uses USB 3.2 Gen 2x2 for 20Gbps throughput. Final Cut Camera is straightforward to use, too, and I appreciate that it doesn’t dump the videos it records into Photos. However, I haven’t had a chance to test Live Multicam. I only have one iPhone (which is shocking, I know). Plus, I was unable to connect that sole iPhone to Final Cut Pro 2 for the iPad due to what appears to be a bug in either iOS or iPadOS 18.

That said, it’s good to see Apple iterating on the iPad version of Final Cut Pro and adding the iPhone into the mix for capture. My video editing needs are fairly simple, but for $49/year, Final Cut Pro 2 for the iPad strikes me as a good deal for a lot of video creators. As of publication, Final Cut Camera was not appearing on the App Store but should be available soon.

Wired Confirms Perplexity Is Bypassing Efforts by Websites to Block Its Web Crawler

Last week, Federico and I asked Robb Knight to do what he could to block web crawlers deployed by artificial intelligence companies from scraping MacStories. Robb had already updated his own site’s robots.txt file months ago, so that’s the first thing he did for MacStories.

However, robots.txt only works if a company’s web crawler is set up to respect the file. As I wrote earlier this week, a better solution is to block them on your server, which Robb did on his personal site and wrote about late last week. The setup sends a 403 error if one of the bots listed in his server code requests information from his site.

Spoiler: Robb hit the nail on the head the first time.

Spoiler: Robb hit the nail on the head the first time.

After reading Robb’s post, Federico and I asked him to do the same for MacStories, which he did last Saturday. Once it was set up, Federico began testing the setup. OpenAI returned an error as expected, but Perplexity’s bot was still able to reach MacStories, which shouldn’t have been the case.1

Yes, I took a screenshot of Perplexity's API documentation because I bet it changes based on what we discovered.

Yes, I took a screenshot of Perplexity’s API documentation because I bet it changes based on what we discovered.

That began a deep dive to try to figure out what was going on. Robb’s code checked out, blocking the user agent specified in Perplexity’s own API documentation. What we discovered after more testing was that Perplexity was hitting MacStories’ server without using the user agent it said it used, effectively doing an end run around Robb’s server code.

Robb wrote up his findings on his website, which promptly shot to the top slot on Hacker News and caught the eye of Dhruv Mehrotra and Tim Marchman of Wired, who were in the midst of investigating how Perplexity works. As Mehrotra and Marchman describe it:

A WIRED analysis and one carried out by developer Robb Knight suggest that Perplexity is able to achieve this partly through apparently ignoring a widely accepted web standard known as the Robots Exclusion Protocol to surreptitiously scrape areas of websites that operators do not want accessed by bots, despite claiming that it won’t. WIRED observed a machine tied to Perplexity—more specifically, one on an Amazon server and almost certainly operated by Perplexity—doing this on wired.com and across other Condé Nast publications.

Until earlier this week, Perplexity published in its documentation a link to a list of the IP addresses its crawlers use—an apparent effort to be transparent. However, in some cases, as both WIRED and Knight were able to demonstrate, it appears to be accessing and scraping websites from which coders have attempted to block its crawler, called Perplexity Bot, using at least one unpublicized IP address. The company has since removed references to its public IP pool from its documentation.

That secret IP address—44.221.181.252—has hit properties at Condé Nast, the media company that owns WIRED, at least 822 times in the last three months. One senior engineer at Condé Nast, who asked not to be named because he wants to “stay out of it,” calls this a “massive undercount” because the company only retains a fraction of its network logs.

WIRED verified that the IP address in question is almost certainly linked to Perplexity by creating a new website and monitoring its server logs. Immediately after a WIRED reporter prompted the Perplexity chatbot to summarize the website’s content, the server logged that the IP address visited the site. This same IP address was first observed by Knight during a similar test.

This sort of unethical behavior is why we took the steps we did to block the use of MacStories’ websites as training data for Perplexity and other companies.2 Incidents like this and the lack of transparency about how AI companies train their models have led to a lot of mistrust in the entire industry among creators who publish on the web. I’m glad we’ve been able to play a small part in revealing Perplexity’s egregious behavior, but more needs to be done to rein in this sort of behavior, including closer scrutiny by regulators around the world.

As a footnote to this, it’s worth noting that Wired also puts to rest the argument that websites should be okay with Perplexity’s behavior because they include citations in their plagiarism. According to Wired’s story:

WIRED’s own records show that Perplexity sent 1,265 referrals to wired.com in May, an insignificant amount in the context of the site’s overall traffic. The article to which the most traffic was referred got 17 views.

That’s next to nothing for a site with Wired’s traffic, which Similarweb and other sites peg at over 20 million page views that same month. That’s a mere 0.006% of Wired’s May traffic. Let that sink in, and then ask yourself whether it seems like a fair trade.

  1. Meanwhile, I was digging through bins of old videogames and hardware at a Retro Gaming Festival doing ‘research’ for NPC. ↩︎
  2. Mehrotra and Marchman correctly question whether Perplexity is even an AI company because they piggyback on other company’s LLMs and use them in conjunction with scraped web data to provide summaries that effectively replace the source’s content. However, that doesn’t change the fact that Perplexity is surreptitiously scraping sites while simultaneously professing to respect sites’ robot.txt file. That’s the unethical bit. ↩︎

The Latest from NPC: Next Portable Console and AppStories

Enjoy the latest episodes from MacStories’ family of podcasts:

This week, Federico takes us on his journey to build the world’s best eGPU, and we take a first look at the Anbernic RG35XXSP, a foldable retro handheld that two out of the three of us have received.

This week, Federico and John recap WWDC week with more on their early testing of the iOS and iPadOS 18 betas and an in-depth conversation about why they are disappointed with Apple’s decision to train its large language models on the Open Web.

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Retro Videogame Streaming Service Antstream To Launch on the App Store Next Week

In the wake of the Digital Markets Act, Apple made a couple of worldwide changes to its App Review Guidelines, along with many EU-specific updates. One of the worldwide updates was to allow third-party game streaming services.

Today, Antstream became the first game streaming service to announce that it will launch an app on Apple’s App Store. Antstream is a retro game streaming service with a catalog of over 1,300 videogames. The service, which is available on multiple other platforms in the EU, US, and Brazil, will bring its licensed library of games to the iPhone and iPad next week on June 27th.

Antstream’s catalog covers a wide variety of retro systems, including the Atari 2600, Commodore 64, SNES, Megadrive, PlayStation One, and Arcade classics. Antstream Arcade normally costs $4.99 per month or $39.99 per year but will be available for $3.99 per month or $29.99 per year for a limited time when it launches on the App Store.

I haven’t used Antstream Arcade yet, but I’m looking forward to trying it to see what’s in the catalog and check out how it performs over Wi-Fi.

Apple Developer Academies in Six Countries to Add AI Courses This Fall

Today, Apple announced that this fall, the company will offer a new curriculum for its Developer Academy students focused on machine learning and artificial intelligence.

According to Apple:

Beginning this fall, every Apple Developer Academy student will benefit from custom-built curriculum that teaches them how to build, train, and deploy machine learning models across Apple devices. Courses will include the fundamentals of AI technologies and frameworks; Core ML and its ability to deliver fast performance on Apple devices; and guidance on how to build and train AI models from the ground up. Students will learn from guided curriculum and project-based assignments that include assistance from hundreds of mentors and more than 12,000 academy alumni worldwide.

The new curriculum will be offered at 18 academies in Brazil, Indonesia, Italy, Saudi Arabia, South Korea, and the United States. With the company’s emphasis on Apple Intelligence at WWDC, it’s not surprising that the skills needed to implement those new features are being added to its educational efforts.