Apple plans to increase fees and apply new restrictions if application downloads are enabled through means other than the App Store on devices used in European Union countries. It is the solution that the company led by Tim Cook found to counteract the effects resulting from the legislation that the European institution will apply starting in March, which aims to reduce the dominance of the technology giant over software and boost competition within the technological sector.
Specifically, through the so-called Digital Markets Law -approved in 2022-, the European Union established "a set of narrowly defined objective criteria for qualifying a large online platform as a so-called 'gatekeeper'," i.e. a company that "has a strong economic position, a solid intermediary position and an entrenched and long-lasting position in the market."
The institution seeks to ensure that the technology companies that currently depend on these 'gatekeepers' have "a safer business environment" and free them from "abusive conditions that limit their development."
According to statements reported by The Wall Street Journal, Apple has "an operating margin that ranges between 70% and 80%" and usually charges a commission to developers of 30%. Now, in response to the Digital Markets Law, the technology giant threatens to charge them a 27% commission for downloads made outside the App Store.
Spotify and Meta Platforms, supporters of the Digital Markets Law
Apple believes that, under its control policy, it manages to rid its devices of viruses and hackers that are filtered through downloads made outside the App Store. Unlike the technology company based in Cupertino (California), the other major operating system, Android (Google), does allow downloads through means other than its Google Play store.
For their part, application developers criticize the high percentages received by the company led by Tim Cook, which harms their profit and, therefore, their progress. One of the technology companies that spoke out was Spotify AB, developer of Spotify -one of the most downloaded applications in the world-, which, through a statement, supported the Digital Markets Law because it will mean an improvement for artists, content creators and users.
He also explained that, starting in March, other associated applications can be downloaded through the Spotify app, audiobooks can be purchased, payment for products will be safe and simple, and news will be communicated through the platform.
Spotify_Post on for the Record_Un Nuevo Spotify en La UE_Voz Media by VozMedia on Scribd
Meta Platforms is also moving to counter the threat from Apple. A year ago, the company led by Mark Zuckerberg began to raise the possibility that users could download applications through ads on Facebook. A plan called Project Neon.
