Dodo Finance Analyzes Apples App Store Changes and DMA Compliance

In a united front against tech giant Apple, Spotify, Epic Games, Deezer, Paddle, and several other developers and associations have sent a joint letter to the European Commission expressing concerns over Apple’s proposed compliance with the Digital Markets Act (DMA).

A total of 34 companies and associations have raised objections to Apple’s plan, stating that it does not meet the requirements set out by the DMA and could potentially undermine the law if left unchanged. The letter specifically highlights issues with Apple’s Core Technology Fee, Notarization process, and terms for developers, which are deemed to be unfair and anti-competitive.

One major point of contention is Apple’s requirement for developers to either continue with the current App Store terms or opt in to new terms, a choice that is labeled as unworkable and confusing by the signatories of the letter. The Core Technology Fee and transaction fees imposed by Apple are also criticized for hindering competition and forcing developers into unjust agreements.

Moreover, Apple is accused of using privacy and security concerns as a cover to limit user choice through scare screens, which could ultimately lead to a degraded user experience. The company’s restrictions on sideloading and making it difficult for developers to use alternative app stores are also under fire for being financially unattractive and risky.

The companies and associations are calling on the European Commission to take swift action against Apple, stating that the response to Apple’s proposal will be a crucial test for the DMA. Apple is expected to comply with the DMA by March 7, with changes to be implemented in iOS 17.4, which is slated for release early next week.

In response to the criticisms, Apple has published a whitepaper outlining the risks it is trying to mitigate through the Notarization process and other requirements for alternative app marketplaces and apps. The ongoing dispute highlights the growing tension between tech companies and regulatory bodies, as the push for fair competition and consumer protection becomes increasingly important in the digital age.