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Posts tagged with "DMA"

The European Commission Opens Two iOS Interoperability Proceedings Against Apple

The European Commission (EC) issued a press release today summarizing two specification proceedings that they have commenced against Apple:

The first proceeding focuses on several iOS connectivity features and functionalities, predominantly used for and by connected devices. Connected devices are a varied, large and commercially important group of products, including smartwatches, headphones and virtual reality headsets. Companies offering these products depend on effective interoperability with smartphones and their operating systems, such as iOS. The Commission intends to specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing and connectivity.

The second proceeding focuses on the process Apple has set up to address interoperability requests submitted by developers and third parties for iOS and IPadOS. It is crucial that the request process is transparent, timely, and fair so that all developers have an effective and predictable path to interoperability and are enabled to innovate.

In a nutshell, the EC is unhappy with connectivity between iOS and third-party devices and plans to tell the company how to comply. The second part requires Apple to set up a process for third parties to request connectivity with iOS.

The EC has given Apple six months to comply with its latest proceedings, during which the commission will share its preliminary findings with Apple and publish a non-confidential summary of the findings publicly so third parties can offer comments.

Apple prides itself on its tight integration between hardware and software, and the EC is determined to open that up for the benefit of all hardware manufacturers. While I think that is a good goal, we’re getting very close to the EU editing APIs, which I find hard to imagine will lead to an optimal outcome for Apple, third-party manufacturers, or consumers. However, if you accept the goal as worthwhile, it’s just as hard to imagine accomplishing it any other way given Apple’s apparent unwillingness to open iOS up itself.


The DMA Version of iOS Is More Fun Than Vanilla iOS

Allison Johnson, writing for The Verge on the latest EU-mandated and Apple-designed changes to iOS in Europe:

They’re getting all kinds of stuff because they have cool regulators, not like, regular regulators. Third-party app stores, the ability for browsers to run their own engines, Fortnite_,_ and now the ability to replace lots of default apps? I want it, too! Imagine if Chrome on iOS wasn’t just a rinky dink little Safari emulator! Imagine downloading a new dialer app with a soundboard of fart sounds and setting it as your default! Unfortunately, Apple doesn’t seem interested in sharing these possibilities with everyone.

And:

It’s starting to look like the company sells two different iPhones: one for people in Europe, and one that everyone else can buy. That’s weird, especially since keeping things simple and consistent is sort of Apple’s thing. But the company is so committed to keeping the two separate that it won’t even let you update apps from third-party app stores if you leave the EU for more than a month.

As I wrote on Threads (much to the disbelief of some commentators), I personally feel like the “DMA fork” of iOS is the version of iOS I’ve wanted for the past few years. It’s still iOS, with the tasteful design, vibrant app ecosystem, high-performance animations, and accessibility we’ve come to expect from Apple; at the same time, it’s a more flexible and fun version of iOS predicated upon the assumption that users deserve options to control more aspects of how their expensive pocket computers should work. Or, as I put it: some of the flexibility of Android, but on iOS, sounds like a dream to me.

Apparently, this thought – that people who demand options should have them – really annoys a lot of (generally American) pundits who seemingly consider the European Commission a draconian entity that demands changes out of spite for a particular corporation, rather than a group of elected officials who regulate based on what they believe is best for their constituents and the European market.

That point of view does Apple a disservice: rather than appreciating how Apple is designing these new options and collaborating with regulators, some commentators are just pointing fingers at a foreign governmental body. From my European and Italian perspective, it’s not a good look.

I think that Apple is doing a pretty good job with their ongoing understanding of the DMA. It’s a process, and they’re doing the work. I don’t find the installation of third-party marketplaces as horrible as others have painted it, and I’m excited about the idea of more default apps coming to iOS. Whether you like it or not, this is the world we live in now. A law was passed, and iPhones (and iPads soon) must be made more versatile. As a result, iPhones are more fun for people like me (a clipboard manager! Fortnite!), while very little has changed for those don’t care about new options.

Apple is adapting to this new reality. Perhaps more folks in the Apple community should, too.

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Apple Announces New Changes to the Browser Choice Screen and Default Apps on iOS and iPadOS in the EU

Today, Apple announced a series of new changes coming later this year to users running iOS and iPadOS in the European Union.

In March 2024, as part of Apple’s response to the DMA, iOS 17.4 introduced a new browser choice screen that prompted users in the EU to choose a new default browser when first opening Safari after the update. Later this year, once again, this screen will be shown to all European users who have set or kept Safari as their default web browser on iOS and iPadOS, “including users who have already seen the choice screen prior to the update.” The screen will also be shown to these users when migrating to a new device.

This updated browser choice screen will now feature App Store subtitles and descriptions for each listed web browser, and will let you tap on a chevron to open its product page on the App Store.

Additionally, if the selected default browser is not already installed, you will now be able to see its download progress right from the browser choice screen. But that’s not all: Apple says that the newly selected browser’s icon will now immediately replace Safari if it was placed in the Dock or on the Home Screen on iOS and iPadOS.

The updated browser choice screen in iOS 18. Source: Apple

The updated browser choice screen in iOS 18. Source: Apple

Along with the updated browser choice screen, Apple announced the addition of a new ‘Default Apps’ section in Settings for users in the EU running iOS and iPadOS 18. In addition to web browsers, alternative app marketplaces, and email apps, you will now be able to set a new default app for each of the following features:

  • Dialing phone numbers
  • Adding Call spam filter
  • Sending messages
  • Navigating with maps
  • Managing passwords
  • Using alternative keyboards
  • Translating text

Apple will now also let users in the EU uninstall the following core apps on iOS and iPadOS: ‌

  • App Store‌
  • Messages
  • Camera
  • Photos
  • Safari
A new 'Default Apps' section in Settings will be available to users in the EU as part of iOS and iPadOS 18. Source: Apple

A new ‘Default Apps’ section in Settings will be available to users in the EU as part of iOS and iPadOS 18. Source: Apple

These changes to the browser choice screen and the ability to select new default apps on iOS and iPadOS come a few months after the European Commission announced their intention to open a non-compliance investigation against Apple in regard to the DMA. In its press release from March 25th, the Commission specifically cited the design of the browser choice screen introduced in iOS 17.4:

The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.

It is unclear at this time whether these changes will satisfy the Commission.


The Epic Cost of Tim Sweeney’s App Store Disputes with Apple and Google

Source: Epic Games.

Source: Epic Games.

Epic Games launched its iOS alternative app marketplace in the EU today with three of its games: Fortnite, Rocket League Sideswipe, and Fall Guys. Those games are also available from AltStore PAL and will be available later from Aptoide, both of which offer alternative storefronts in the EU. Epic has also said that third-party games will be added by the end of the year.

According to Stephen Totilo, who interviewed Epic CEO Tim Sweeney and others earlier this week for his excellent newsletter Game File:

The company has spent hundreds of millions battling Apple and Google since 2020 to get to this point, Sweeney told Game File during an interview conducted earlier this week.

And, he added, Epic may have missed out on as much as $1 billion in Fortnite revenue in the process,

Tim Sweeney can be a little over the top at times when talking about his company’s disputes with Apple and Google, but his in-depth response to Totilo’s question about the impact of App Store fees on the mobile gaming industry are excellent and rang true to me. Both he and Altstore co-founder Riley Testut explained to Totilo that mobile gaming and Apple would thrive if fees were reduced, with Testut pointing to changes in App Review Guidelines about emulators and virtual machines as evidence of the positive results of competition.

For anyone in the EU interested in installing the Epic Game Store, Epic has published a walkthrough video on YouTube:

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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.


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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AppStories, Episode 382 – A Roomful of Suits: AltStore and Delta with Riley Testut

This week on AppStories, we are joined by Riley Testut for a conversation about the history of AltStore from side-loaded app to official alternative app marketplace in the EU and Delta’s dominance of the Top Free App chart in the US and elsewhere..


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An Interview with Riley Testut


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Apple Changes How the Core Technology Fee Works and Confirms that Its Alternative Business Terms Will Apply to iPad Apps This Fall

One of the most controversial aspects of Apple’s response to the EU’s Digital Markets Act (DMA) was the introduction of a Core Technology Fee (CTF), which must be paid by developers who opt into Apple’s alternative business terms. Today, in a post on its developer website, Apple announced changes to the CTF and regarding the treatment of iPadOS, which was added to Apple’s DMA compliance obligations earlier this week.

The problem was that the CTF as originally conceived applied to all apps, including free apps. If a developer offered a free app and had first annual app installs of over 1 million installations, they would owe the €0.50 per installation fee, regardless of the fact they earned no income from the app. The fee, as proposed, would likewise be a problem for developers with other sources of income that weren’t enough to pay the CTF.

Today, Apple made two changes to the way the CTF works:

  • First, no CTF is required if a developer has no revenue whatsoever. This includes creating a free app without monetization that is not related to revenue of any kind (physical, digital, advertising, or otherwise). This condition is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.
  • Second, small developers (less than €10 million in global annual business revenue*) that adopt the alternative business terms receive a 3-year free on-ramp to the CTF to help them create innovative apps and rapidly grow their business. Within this 3-year period, if a small developer that hasn’t previously exceeded one million first annual installs crosses the threshold for the first time, they won’t pay the CTF, even if they continue to exceed one million first annual installs during that time. If a small developer grows to earn global revenue between €10 million and €50 million within the 3-year on-ramp period, they’ll start to pay the CTF after one million first annual installs up to a cap of €1 million per year.

The first change should take care of the free app scenario regardless of its popularity. The second change is designed to transition small businesses into paying the CTF. The first time a business with less than €10 million of global annual revenue crosses the CTF threshold, they won’t pay the fee. They will, however, have to start paying the fee up to a €1 million cap if the business’ global annual income grows to between €10 million and €50 million in that 3-year period. If revenue exceeds that range, the cap on the CTF presumably would not apply.

In the same post, Apple confirmed that the same EU rules that apply to iOS will begin to apply to iPadOS this fall and that a download of an app on both iOS and iPadOS will only count as one annual installation for CTF purposes.


The Talk Show, Episode 399: ‘I Decapitated the MacBook Air’ with Federico Viticci

This week, Federico joined John Gruber on The Talk Show for a wide-ranging conversation about:

It’s a terrific episode from two people who have witnessed the evolution of blogging firsthand and Apple’s struggle to find a comfortable place for the iPad in its product lineup. That makes it the perfect warmup for next week’s Apple event.

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