Developers Are in Open Revolt Over Apple’s New App Store Rules
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Deep Dive
Why are European developers upset with Apple's new App Store rules?
Developers feel Apple's new terms entrench its power, restrict their options, and impose punitive fees, making it difficult to operate outside Apple's ecosystem.
How does Apple's new system affect developers' revenue?
Apple's new terms include a core technology fee for downloads and updates exceeding 1 million times in a year, which could significantly increase customer acquisition costs for companies like Spotify.
What is the Digital Markets Act (DMA) and how does it impact Apple?
The DMA is an EU regulation mandating changes to gatekeeper platforms like Apple's App Store, requiring them to allow alternative app stores and payment systems. Apple must comply by March 7 to avoid fines.
What are the 'scare screens' and how do they impact user behavior?
Scare screens are warnings issued by iPhones about security risks when using non-Apple payment systems, which developers estimate could deter 50% of users from proceeding with purchases.
What is Spotify's stance on Apple's new business terms?
Spotify believes the new terms are untenable, citing a potential tenfold increase in customer acquisition costs due to download fees. They prefer to stick with the current system to avoid Apple's commission.
How does Apple justify its new rules under the DMA?
Apple claims the changes are necessary to protect EU users from security risks introduced by the DMA, including malware, scams, and ensuring app functionality on its platforms.
What is the European Commission's role in this dispute?
The European Commission will assess Apple's compliance and the market's reaction after the March 7 deadline, potentially imposing fines if no improvements are made.
- Apple's new rules are seen as abusive and extortionate by developers.
- Developers claim Apple treats iPhones as its territory, tightly controlling access and taking a chunk of profits.
- The EU's Digital Markets Act was expected to loosen Apple's control, but developers feel the new terms are disappointing.
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