Apple Complies with DMA: Transformative Changes for iOS, App Store, and Safari

Despite its initial reluctance, Apple has announced its compliance with the European Union's Digital Markets Act (DMA), leading to significant changes across its services, including iOS, the App Store, and the Safari web browser. The DMA aims to prevent anti-competitive practices among major digital players in Europe, designated as "gatekeepers." Following in the steps of Google and Meta, Apple is set to align with these regulations by March 2024.

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Changes to iOS in Response to DMA

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Apple has introduced several modifications to iOS to adhere to the DMA:

1. Alternative App Marketplaces: iOS will now support the distribution of applications from alternative app markets. This includes new tools and APIs for developers to offer iOS apps for download from other stores.
2. New Framework for Alternative App Stores: A new framework and APIs will enable the creation of alternative app stores.
3. Alternative Rendering Engines: Developers will have access to new frameworks and APIs to use alternative rendering engines.
4. Interoperability Request Form: Developers can submit requests for interoperability with iPhone’s hardware and software features.
5. NFC Technology and Default Payment Apps: New APIs will allow developers to incorporate NFC technology in banking apps. Users will also have the option to set a third-party contactless payment app or alternative app store as their default choice.

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These changes aim to provide more flexibility and choice for developers and users, while also ensuring privacy and security measures to reduce the risk of data breaches and malware proliferation in alternative app stores.

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Updates to Safari Under DMA Regulations

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Apple is set to introduce the option for users to set a default browser other than Safari on iOS. With the upcoming Safari 17.4 update, a new choice screen will appear upon the browser's first launch, allowing users in the EU to select their preferred default browser from a list of options. This change, a result of DMA requirements, reflects Apple's commitment to user choice, albeit with some reservations expressed by the company.

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App Store Revisions for Developer Compliance

The App Store will undergo changes including:

1. New Payment Service Providers Options: Developers will have more choices for using payment service providers.
2. External Payment Processing Links: Developers can use external links for payment processing.
3. Business Planning Tools: Enhanced tools for business planning and management will be available.

These updates imply that developers can direct customers to external online stores and offer alternative payment methods, moving away from the exclusive in-App Store payment system. Apple will implement informative and security measures, such as labels indicating alternative payment processing, product information notes within apps, and extended review and control measures.

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New Commercial Terms for Developers

Developers targeting the EU market must accept Apple's new commercial terms, which include changes in commission, payment processing fees, and core technology fees for iOS apps. Apple has introduced a fee calculation tool and a developer support page to help navigate these changes, set to take effect in March 2024.