These beta versions revealed several changes that will affect users in the European Union in order to comply with the Digital Markets Act (DMA). To comply with the DMA, the Cupertino company made several significant changes to how the App Store and apps work, but only within the European Union. Although these changes are present in iOS 17.4, they are restricted to EU countries.
Apple is trying to ensure that the 6 March deadline is met for users who update to iOS 17.4. Below is a summary of what will change for those affected, as well as Apple’s justification for these changes.
- Alternative app stores: App developers in the EU have the option to run alternative app stores or use those stores to distribute their apps. As part of this change, Apple introduced a new fee structure. Any developer can create an app marketplace as long as they meet Apple’s requirements for customer support, fraud prevention, customer experience and other aspects.
- Alternative payment options: Apple now allows apps to use alternative payment options, and in-app purchases will no longer be mandatory. Developers can build these options directly into their apps or direct users to their websites to complete purchases.
- App Store notarisation: Apple explained that apps distributed through alternative app stores in the EU must go through a verification process similar to the one used for Mac apps.
- Limitations on Screen Time and refunds: The company states that apps distributed via alternative app stores will not support certain long-term features such as Screen Time, refunds and in-app purchases in the same way as standard App Store apps.
- Third-party NFC access: Third-party payment services and banks will be able to offer their own tap-to-pay solutions on Apple devices in the European Economic Area, allowing payments directly in apps without the need to use Apple Pay or the Wallet app.
- Default browser options: Users in the European Union will have the option to choose a new default browser from a list of the most popular browsers on iOS devices. Firefox, Opera, Chrome, Brave and Microsoft Edge are some of the options.
- Developer access to hardware and software: Apple will allow developers of iOS apps distributed in the EU to request greater interoperability with iPhone hardware and software features. The company says it will review each request individually.
- Expanded analytics availability: As part of the App Store changes in the EU, the company is providing updated analytics data to all developers worldwide. To help them evaluate their apps’ performance, more than 50 new reports will be available through the App Store Connect API.
- Apple’s reasons for limiting the changes to the European Union: In a support document, Apple explained why alternative app stores, alternative payment options and other updates are restricted to the EU, highlighting threats such as fraud, scams and other privacy issues.
Developments as a direct or indirect result of the announced changes
Apple’s new agreements in the European Union include a Core Technology Fee which, according to some developers, may completely bankrupt free apps if they go viral. Although Apple does not charge for the first one million “first annual installs” on iOS per year, developers start paying after that. For apps like Spotify, which have millions of users, Apple’s core technology fee may be prohibitively high.
According to Epic Games, as a result of Apple’s new alternative app store policy in the European Union, the company plans to launch its Epic Games Store for iPhone and iPad. The popular game Fortnite will be available in the Epic Games Store, allowing iPhone and iPad users to install and play the game without relying on a cloud gaming server. Fortnite was removed from the iOS App Store a long time ago due to a legal dispute between Apple and Epic Games.
In addition, Apple announced that it will allow game-streaming apps worldwide in the App Store. This means that services such as Xbox Cloud Gaming and Nvidia GeForce NOW will now be accessible as standalone apps for iPhone and iPad, instead of being available only via the web.
Tech companies must comply with the EU’s DMA regulations by 6 March 2024. Currently available as a beta update, iOS 17.4 will be released publicly in March. Due to concerns about user privacy and security, Apple is unlikely to roll out these changes globally unless it is forced to do so by national laws.
