Apple Faces 'Strong Action' if App Store Tweaks Don't Cut It, EU Warns

Apple's proposed changes to its App Store face a stern "not good enough" from the European Union, with the bloc's industry chief Thierry Breton warning of "strong action" if the tech giant fails to meet the mark set by new EU regulations.

The Digital Markets Act (DMA), due to come into effect on March 7, aims to curb the dominance of Big Tech companies like Apple by opening up their walled gardens to competition. One key area of focus is the App Store, where Apple currently controls both app distribution and payment systems, raising concerns about unfair competition and high developer fees.

In response, Apple has outlined plans allowing developers to use alternate payment systems for in-app purchases within the App Store. However, critics, including Breton, argue these changes fall short of the DMA's requirements.

"The DMA will open the gates of the internet to competition so that digital markets are fair and open," Breton told Reuters in an exclusive interview. "Change is already happening. As from 7 March we will assess companies' proposals, with the feedback of third parties."

He did not specify what form this "strong action" might take, but potential options include hefty fines, forced interoperability with third-party app stores, or even antitrust lawsuits.

Apple maintains its proposed tweaks comply with the DMA, claiming 99% of developers would see reduced or unchanged fees. However, critics point out that the new fee structure still favors larger companies like Meta and Spotify, while potentially hurting smaller developers.

The issue also extends beyond fees, with concerns surrounding Apple's control over app distribution and access to device features. The DMA aims to address this by preventing gatekeeping practices that stifle competition.

The standoff between Apple and the EU is just one chapter in the ongoing battle over Big Tech's dominance. The outcome will have significant implications not just for app developers and consumers in Europe, but for the future of the global digital landscape.

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