The European Union has passed a new regulation that will force Apple to allow more options for app distribution and payment processing on its iOS devices. The Digital Markets Act (DMA) aims to make the digital sector fairer and more competitive, but it also brings new risks and challenges for users and developers. Here is what you need to know about the DMA and how it will affect the iPhone experience in the EU.
What is the DMA and why does it matter?
The DMA is a set of rules that applies to large online platforms that are designated as “gatekeepers” by the European Commission. These platforms are considered to have a significant impact on the digital economy and society, and therefore need to comply with certain obligations to ensure fair and open markets. The DMA covers areas such as data access, interoperability, self-preferencing, and app store policies.
Apple is one of the companies that falls under the scope of the DMA, along with Google, Amazon, Facebook, and others. The DMA requires Apple to make changes to its iOS, Safari, and App Store services in the EU, to allow more choice and flexibility for users and developers. For example, Apple will have to:
- Enable users to download apps from alternative app marketplaces or directly from developers, without going through the App Store.
- Allow developers to use alternative payment methods for in-app purchases, without paying Apple a commission fee.
- Permit developers to use alternative web browser engines in their iOS apps, instead of Safari’s WebKit engine.
- Provide developers with access to more data and analytics about their apps and users, as well as the ability to transfer user data to other platforms.
- Grant developers the right to request interoperability with iPhone and iOS hardware and software features, such as NFC, Siri, Face ID, and iMessage.
These changes are expected to come into effect in March 2024, and will only apply to apps that are available and distributed to users in the 27 EU member countries.
How will the DMA change the iPhone experience for users?
The DMA will give users more options and control over how they use their iPhones, but it will also introduce new complexities and risks. Users will be able to download apps from sources other than the App Store, such as alternative app marketplaces or developers’ websites. They will also be able to choose different payment methods for in-app purchases, such as credit cards, PayPal, or cryptocurrencies.
However, these options will also expose users to potential privacy and security threats, such as malware, fraud, scams, illicit and harmful content, and data breaches. Apple has built a system that aims to protect users from these threats, by reviewing and verifying apps before they are available on the App Store, and by providing a secure and private payment system with In-App Purchase. The DMA will weaken this system, and make it harder for Apple to detect, prevent, and take action against malicious apps on iOS, and to support users impacted by issues with apps downloaded outside of the App Store.
That’s why Apple is introducing new safeguards to reduce the risks and deliver the best, most secure experience possible for users in the EU. These include:
- Notarization for iOS apps: This is a process that checks apps for malicious code and confirms that they have been signed by a trusted developer. Apps that are downloaded from alternative app marketplaces or directly from developers will need to be notarized by Apple before they can be installed on iOS devices.
- Authorization for marketplace developers: This is a requirement that developers who create alternative app marketplaces on iOS obtain an authorization from Apple, and agree to follow certain guidelines and standards for app quality, security, and privacy. Marketplace developers will also have to provide users with clear information and disclosures about the apps they offer, and the risks involved.
- Disclosures on alternative payments: This is a measure that requires developers who use alternative payment methods for in-app purchases to provide users with clear and accurate information and disclosures about the payment options, the terms and conditions, the fees and charges, and the refund policies. Developers will also have to inform users that they will not be able to access Apple’s customer support, dispute resolution, or refund mechanisms for transactions made with alternative payments.
Apple will also share new resources and guidance to help users understand the changes they can expect, and how to navigate the new options and risks. Users will be able to choose whether they want to use the new options or stick to the current system, and they will be able to change their preferences at any time.
How will the DMA affect developers and the app ecosystem?
The DMA will create new opportunities and challenges for developers and the app ecosystem in the EU. Developers will be able to distribute their apps on iOS in different ways, and use different payment methods for in-app purchases, without paying Apple a commission fee. They will also be able to access more data and analytics about their apps and users, and request interoperability with iPhone and iOS features. These changes could enable developers to reach more customers, offer more services, and innovate more.
However, developers will also face new responsibilities and risks, such as complying with the DMA’s obligations and requirements, ensuring the quality, security, and privacy of their apps and payments, and dealing with potential issues and disputes with users and other platforms. Developers will also have to compete with more apps and services on iOS, and may lose some of the benefits and advantages of being part of the App Store ecosystem, such as exposure, discovery, promotion, and user trust.
Apple will provide developers with new tools and technologies to help them take advantage of the new options and comply with the DMA’s rules. These include more than 600 new APIs, expanded app analytics, functionality for alternative browser engines, and options for processing app payments and distributing iOS apps. Developers can learn more about these changes on the Apple Developer Support page, and can start testing them today in the iOS 17.4 beta.
Apple will also continue to offer the same business terms and services to developers who choose to distribute their apps only on the App Store and use its In-App Purchase system, as it does in the rest of the world. Apple will also continue to invest in the App Store and its features, such as App Review, AppleCare, App Store Connect, App Store Search Ads, and more.
The DMA is a landmark regulation that will have a significant impact on the iPhone experience for millions of users and developers in the EU. The DMA will create more choice and flexibility, but also more complexity and risk. Apple will comply with the DMA’s requirements, while introducing new safeguards and tools to protect users and developers, and deliver the best, most secure experience possible. The DMA will also bring new opportunities and challenges for the app ecosystem, and may change the competitive landscape of the digital sector.
