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EU antitrust chief ready to get on Apple's case about fees and safety warnings

Apple's compliance with the DMA may not satisfy regulators

The Digital Markets Act forced companies like Apple to open up opportunities for more competition, but the legislation has resulted in new problems with monetization and security concerns.

Apple's problems with the Digital Markets Act have only just begun as regulators scrutinize every inch of the company's compliance efforts. It seems there may be some concern that Apple is trying to drive developers away from the new contract options.

An interview conducted by Reuters with the EU's antitrust chief Margrethe Vestager revealed that key portions of company's compliance with the DMA will be under investigation. Apple specifically may be causing problems with its fees and security warnings.

"There are things that we take a keen interest in, for instance, if the new Apple fee structure will de facto not make it in any way attractive to use the benefits of the DMA," Vestager said in the interview. "That kind of thing is what we will be investigating."

The fee structure in question is Apple's Core Technology Fee, which requires developers with over 1 million app downloads to pay half a euro for each new download annually. The structure has caused worry amongst developers that build free apps, which could be financially ruined by such a fee.

Vestager also isn't happy with how Apple might be discouraging users from engaging with external app marketplaces. Warnings tell users about security risks associated with using apps outside the App Store.

"I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA," Vestager said about the warnings. "The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide."

Developer feedback is also helping the EU antitrust chief decide what to investigate. There has apparently been plenty of feedback beyond the high-profile complaints from companies like Spotify and Epic.



28 Comments

foregoneconclusion 12 Years · 2857 comments

"I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA," Vestager said about the warnings. "The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide."

Uhhhhh...if the other service providers get to decide how "safe it is" then why wouldn't Apple be allowed to say there are risks? Vestager just admitted that the DMA doesn't have security standards. Didn't the EU previously claim that App Store users would have no idea that they could pay for things on the internet unless a message inside the app told them they could do it? But now Apple isn't allowed to communicate that the security standards will be different...which is definitely true according to Vestager herself.

mikethemartian 18 Years · 1493 comments

“Aye, aye! and I'll chase him round Good Hope, and round the Horn, and round the Norway Maelstrom, and round perdition's flames before I give him up.”

tmay 11 Years · 6456 comments

"how they will make sure it is safe is for them to decide"

Security is always the last item on the list of priorities for the EU.

foregoneconclusion 12 Years · 2857 comments

“Aye, aye! and I'll chase him round Good Hope, and round the Horn, and round the Norway Maelstrom, and round perdition's flames before I give him up.”

LOL...Moby Apple, the rainbow whale that ate Nokia and Ericcson's smartphones. 

AppleZulu 8 Years · 2205 comments

"I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA," Vestager said about the warnings. "The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide."
Uhhhhh...if the other service providers get to decide how "safe it is" then why wouldn't Apple be allowed to say there are risks? Vestager just admitted that the DMA doesn't have security standards. Didn't the EU previously claim that App Store users would have no idea that they could pay for things on the internet unless a message inside the app told them they could do it? But now Apple isn't allowed to communicate that the security standards will be different...which is definitely true according to Vestager herself.

Bingo.

Apple offers a number of consumer protection benefits for users of third-party apps downloaded through the App Store, and in-app subscriptions and purchases handled through the App Store. Apps are reviewed for compatibility and compliance with consumer data collection standards, including required transparency and permissions for collection and use of certain user data. In-app subscriptions can be stopped as easily as they are started. The list goes on. 

For third-party app stores, these things - by definition - will not be handled by Apple, and Apple can't guarantee that similar standards will be maintained by operators of third-party app stores. They not only should be allowed to communicate this, an actual consumer protection law should probably require that this be communicated.

As much as the EU seems to be actively pretending it's not the case, the primary reason that some app developers want to have access to the iOS platform outside the App Store, is specifically because they want to defy Apple's standards for security, privacy and consumer protections. They want to collect and sell user data and they want to implement in-app sales and subscription practices that don't meet Apple's standards.