iPhone is a computer. You just can't use it however you want because it's a closed system. You cannot install software that Apple does not approve unless you jailbreak the device. Here the term itself denotes unlawful access and not a right arising from ownership.
Apple's anti-competitive rules, as well as those imposed by other tech platforms, eventually prompted lawmakers in Europe to react. They adopted him Digital Marketing Act (DMA) to restore competition in markets dominated by disruptive oligopolies.
With DMA enforcement starting in March, Apple announced on Thursday changes to iOS, Safari and the App Store in the European Union to fulfill its legal obligations. But Cupertino's disregard for the law is evident.
Describing iOS, Safari, and the App Store as "part of an integrated end-to-end system" rather than separate products, the company tries to sweep its dirt under the rug, saying "DMA requires changes to this system that pose greater risks to users and developers.”
"The changes we are announcing today comply with the requirements of the Digital Markets Act in the European Union, while helping to protect EU users from the inevitable increased privacy and security threats this regulation brings," said Phil Schiller , an Apple partner.
But as many industry observers and competitors have said, this looks like a very good example of malicious compliance.
Apple will make a number of changes in Europe. These include the license to use third-party Stores, but impose obligations and costs on Store operators.
It also allows sideloading, but uses its own definition of the term. In general, sideloading refers to installing an app directly on a device. Apple believes that sideloading should come from a Store outside of Apple and not from an executable like Android's .apk files.
"Typically, sideloading refers to downloading iOS apps outside of an official app store — and in the EU, users will have the option to download alternative Stores that offer apps for download," Apple says.
On the other hand, Apple has reduced the commission it charges for paid iOS apps, but added fees elsewhere that may end up being worse for some developers.
The current rate is 15 percent for apps enrolled in Apple's Small Business Program with less than $1 million in annual revenue, or 30 percent for apps with more than $1 million in revenue. Subscription-based apps start at 30 percent for the first year, then drop to 15 percent.
In the EU, Apple's profit rate becomes 10 percent for most developers, or 17 percent for transactions in digital goods and services, plus a 3 percent fee for processing payments in the App Store.
13 or 20 percent seems like an improvement over existing US rates. But not for popular apps, which have to pay the new basic technology fee of €0,50 per app install per user per year after one million app installs.
Such as observed David Heinemeier Hansson, CTO of Basecamp, the cost to distribute an app like Instagram to a third-party store in the EU would be about $135 million a year.
"This may be the most egregious attempt at public policy blackmail ever by any technology company."
