Posts tagged with "EU"

AI Companies Need to Be Regulated: An Open Letter to the U.S. Congress and European Parliament

[CC0: No rights reserved](https://pxhere.com/en/photo/489513).

CC0: No rights reserved.

Federico: Historically, technology has usually advanced in lockstep with opening up new creative opportunities for people. From word processors allowing writers to craft their next novel to digital cameras letting photographers express themselves in new ways or capture more moments, technological progress over the past few decades has sustained creators and, perhaps more importantly, spawned industries that couldn’t exist before.

Technology has enabled millions of people like myself to realize their life’s dreams and make a living out of “creating content” in a digital age.

This is all changing with the advent of Artificial Intelligence products based on large language models. If left unchecked without regulation, we believe the change may be for the worse.

Over the past two years, we’ve witnessed the arrival of AI tools and services that often use human input without consent with the goal of faster and cheaper results. The fascination with maximization of profits above anything else isn’t a surprise in a capitalist industry, but it’s highly concerning nonetheless – especially since, this time around, the majority of these AI tools have been built on a foundation of non-consensual appropriation, also known as – quite simply – digital theft.

As we’ve documented on MacStories and as other (and larger) publications also investigated, it’s become clear that foundation models of different LLMs have been trained on content sourced from the open web without requesting publishers’ permission upfront. These models can then power AI interfaces that can regurgitate similar content or provide answers with hidden citations that seldom prioritize driving traffic to publishers. As far as MacStories is concerned, this is limited to text scraped from our website, but we’re seeing this play out in other industries too, from design assets to photos, music, and more. And top it all off, publishers and creators whose content was appropriated for training or crawled for generative responses (or both) can’t even ask AI companies to be transparent about which parts of their content was used. It’s a black box where original content goes in and derivative slop comes out.

We think this is all wrong.

The practices followed by the majority of AI companies are ethically unfair to publishers and brazenly walk a perilous line of copyright infringement that must be regulated. Most worryingly, if ignored, we fear that these tools may lead to a gradual erosion of the open web as we know it, diminishing individuals’ creativity and consolidating “knowledge” in the hands of a few tech companies that built their AI services on the back of web publishers and creators without their explicit consent.

In other words, we’re concerned that, this time, technology won’t open up new opportunities for creative people on the web. We fear that it’ll destroy them.

We want to do something about this. And we’re starting with an open letter, embedded below, that we’re sending on behalf of MacStories, Inc. to U.S. Senators who have sponsored AI legislation as well as Italian members of the E.U. Special Committee on Artificial Intelligence in a Digital Age.

In the letter, which we encourage other publishers to copy if they so choose, we outline our stance on AI companies taking advantage of the open web for training purposes, not compensating publishers for the content they appropriated and used, and not being transparent regarding the composition of their models’ data sets. We’re sending this letter in English today, with an Italian translation to follow in the near future.

I know that MacStories is merely a drop in the bucket of the open web. We can’t afford to sue anybody. But I’d rather hold my opinion strongly and defend my intellectual property than sit silently and accept something that I believe is fundamentally unfair for creators and dangerous for the open web. And I’m grateful to have a business partner who shares these ideals and principles with me.

With that being said, here’s a copy of the letter we’re sending to U.S. and E.U. representatives.

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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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The EU Pulls iPadOS Into the DMA Fray

Today, the European Union announced that it has added iPadOS to the products and services subject to the Digital Markets Act (DMA). The designation gives Apple six months to comply with the DMA.

In a press release, the European Commission said:

The Commission’s investigation found that Apple presents the features of a gatekeeper in relation to iPadOS, as among others:

  • Apple’s business user numbers exceeded the quantitative threshold elevenfold, while its end user numbers were close to the threshold and are predicted to rise in the near future.
  • End users are locked-in to iPadOS. Apple leverages its large ecosystem to disincentivise end users from switching to other operating systems for tablets.
  • Business users are locked-in to iPadOS because of its large and commercially attractive user base, and its importance for certain use cases, such as gaming apps.

On the basis of the findings of the investigation, the Commission concluded that iPadOS constitutes an important gateway for business users to reach end users, and that Apple enjoys an entrenched and durable position with respect to iPadOS.

In a statement to Bloomberg, an Apple spokesperson said that:

…the company remains focused on delivering for European consumers, “while mitigating the new privacy and data security risks the DMA poses.”

iOS is already subject to the DMA, and Apple’s response meant that actions it took to comply with the law did not apply to iPadOS, leading to incongruous differences between the platforms. With the addition of iPadOS under the purview of the DMA, I expect some of those differences will need to be ironed out.

AltStore Is Now Available in the EU

It’s been ready for a while, but today, AltStore is finally available for iOS users in the EU.

Riley Testus, one of AltStore’s founders, had this to say about the launch:

This is a day I’ve been looking forward to for over 10 years.

I’m thrilled to announce a brand new version of AltStore — AltStore PAL — is launching TODAY as an Apple-approved alternative app marketplace in the EU. AltStore PAL is an open-source app store made specifically for independent developers, designed to address the problems I and so many others have had with the App Store over the years. Basically, if you’ve ever experienced issues with App Review, this is for you!

We’re launching with 2 apps initially: my all-in-one Nintendo emulator Delta — a.k.a. the reason I built AltStore in the first place — and my clipboard manager Clip, a real clipboard manager that can actually run in the background. Delta will be FREE (with no ads!), whereas Clip will require a small donation of €1 or more. Once we’re sure everything is running smoothly we’ll then open the doors to third-party apps — so if you’d like to distribute your app with AltStore, please get in touch.

AltStore is a self-hosted solution, meaning once it starts accepting third-party apps, those developers will have to host and promote their apps themselves. From a user’s standpoint, that means:

…there is no central directory of apps; the only apps you’ll see in AltStore are from sources you’ve explicitly added yourself.

Also, if you’re in the EU and have US and EU Apple IDs, sign into the EU one and download AltStore. Then, you’ll be able to log back in with your US Apple ID if you want, and AltStore will still work.

As Riley explains, this is a lot like Apple’s recently announced web distribution feature in the EU.

Thanks to Federico, we have screenshots.

Thanks to Federico, we have screenshots.

The AltStore team envisions their marketplace as a place for apps from indie developers and those that Apple won’t allow on the App Store, like the team’s Clip app. AltStore will use Patreon donations as its payment system for paid apps, just like AltStore and Delta have been doing for years. Also, AltStore will not take a commission on Patreon donations. However, AltStore will cost €1.50/year to cover Apple’s Core Technology Fee.

It’s exciting to see AltStore live in the EU. I wish it were available in the US too, and I recommend reading Riley’s blog post about what motivated him build AltStore. It’s about more than videogame emulators, which I love. That’s maybe where AltStore started, but it’s about the iOS indie developer community, which I love even more.

Automattic Acquires Messaging Integrator Beeper→

Mark Gurman, writing for Bloomberg, reports that Beeper, the messaging app that ultimately lost its fight to bring blue bubbles to Android, has been acquired by Automattic, for $125 million according to his sources.

You may recall that Automattic, the company behind WordPress, Tumblr, Day One, Pocket Casts, and other endeavors, acquired a company called Texts last fall. Roughly two months later, Beeper took advantage of a loophole in iMessage’s architecture to offer iMessage natively on Android. After some back and forth, Apple ultimately blocked the technique Beeper was using.

According to Gurman, Automattic is acquiring Beeper’s team of 27 employees, its app, which integrates services like Signal, Facebook Messenger, and Slack, and about 100,000 customers. Of those things, I suspect the people and the customers were most important to Automattic because, as I explained in my story about the company’s purchase of Texts, the two services run on different technology stacks. Regardless of Automattic’s underlying motivations, it’s more apparent than ever that the company is betting that consumer demand, government regulation, and antitrust lawsuits will open up messaging platforms for companies ready to integrate them.

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A First Look at AltStore in the EU→

Callum Booth, writing for The Verge, was able to try a pre-release version of the app marketplace flavor of AltStore, which – pending Apple’s approval – should be one of the first third-party marketplaces under the new DMA regulation. The installation process, as expected, is not exactly straightforward:

It goes like this: you begin by clicking a browser-based link to load the alternative store. From there, you receive a pop-up informing you that your installation settings don’t allow marketplaces from that developer. Then, you head into Settings, enable the marketplace, return to your browser, click the download link again, and receive another prompt asking you to confirm the install. Finally, you can open the store and browse the available apps.

Make sure to check out the screenshots in the story to see what the installation flow looks like in practice. Besides Delta, the Nintendo emulator created by the AltStore developers that has long been available as part of AltStore’s other (non-jailbreak) installation method, Booth tested Clip. This one is interesting since it’s a clipboard manager that can monitor changes to the clipboard in the background – something that is not allowed under traditional App Store rules:

Regarding the app itself, the version of Clip I tried differs from similar software offered on Apple’s App Store in that it constantly runs in the background. Normally, clipboard managers on iOS have to use a variety of workarounds to achieve comparable functionality. For example, Paste requires you to open the app each time you want to add something you’ve copied to the clipboard.

This is where Clip thrives, by comparison. When you copy something, you immediately receive a notification and can swipe down to save it to your clipboard. This means you have the option to add it if it’s something useful — like an address — or dismiss the notification if it’s something you don’t want logged, like a password. I found saving your copied items like this into a centralized location to be incredibly useful, as it makes sharing and reusing these snippets painless.

I’m very curious to see how Apple will go about notarizing apps that rely on native APIs to perform “unexpected” tasks; in this case, it sounds like Clip will integrate with MapKit to let the app stay active in the background and monitor changes to the system clipboard. (Remember when Pastebot for iOS implemented a silent audio track to run in the background? Some things never change.) Regardless, I’m keen to play around with these marketplaces as soon as I can, and I will report back.1

  1. Here’s a fun problem for me at the moment: I live in Italy, haven’t left the country in months, and I use a dual Apple ID setup with an Italian iCloud account and a U.S. App Store account. Despite my geographic location, iOS 17.4 (and the 17.5 beta) won’t let me access any of the new EU-only features yet. For example, the browser selection screen never came up for me after updating to iOS 17.4, and when I tried to install a beta version of AltStore that Riley Testut sent to me, iOS told me that my device isn’t “eligible” to install the app. I have to wonder: will iOS eventually understand that I’m an Italian citizen with a U.S. Apple ID? Or am I living in some kind of weird edge case that will never be fixed? We know that there’s a grace period for users who leave the EU, but what about the other way around? ↩︎
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Apple Announces New Distribution Options for iOS Developers in the EU→

Apple has announced a trio of additional changes related to iOS developers in the EU where it is subject to the Digital Markets Act. The changes, which are outlined on Apple’s developer website, include:

  • Effective immediately, developers that offer alternative marketplaces will no longer be required to offer apps from other developers, meaning that a company like Meta could open a store with just its apps in the EU.
  • Also effective immediately, Apple has relaxed the requirements surrounding linking out to external webpages from an app. Developers are no longer required to use Apple’s templates, and instead, can design their own interfaces that link out to promotions, discounts, and deals that can be completed outside of the App Store.
  • Later this spring, developers in the EU will be allowed to offer their apps directly from their websites instead of through an alternative marketplace. There are eligibility requirements in Apple’s developer documentation, but this is a significant change that should open up a wider range of storefronts to users.

Whether it’s the result of feedback from developers or pressure from the European Commission, watching the app landscape transformed in very public fits and starts is fascinating.

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