Edition #10 App Stores in EU Set for Radical Change on March 6th
Andrew Christodoulou
Speaker ??| Financial Services Expert ??| Runner ??| BTW I like talking about Fintech??
Diving into March with updates on Netflix urging users away from Apple 's App Store payments. Unpack the impact on Netflix subscribers, Apple's in-app fee controversies, and the recent legal tussles. Also, get insights into Apple's iOS 17.4 beta tweaks for the EU, aligning with the Digital Markets Act. From alternative app stores to payment options, join us as we navigate the evolving tech landscape this month ?
March update??
In January, Apple released beta versions of iOS 17.4 and iPadOS 17.4 with significant changes aimed at complying with the Digital Markets Act (DMA) in the European Union (EU). These changes, set to take effect by March 6, primarily impact users within the EU. Among the alterations are provisions allowing EU app developers to offer alternative app stores, implement alternative payment options, and undergo notarization processes. However, apps distributed through these alternative stores will have limitations, affecting features like Screen Time, refunds, and in-app purchases.
Other modifications include enabling NFC payments directly within apps, independent of Apple Pay, and permitting EU users to choose a default browser from a list. Developers can also request increased interoperability with iPhone hardware and software features, while Apple is providing expanded analytics information globally. The company justifies these changes for the EU by citing concerns about potential risks such as fraud and privacy threats.
As part of iOS 17.4, Apple introduced a Core Technology Fee in its EU terms, raising concerns among some developers, especially those with freemium apps that could incur high fees after the first one million annual installs. Epic Games plans to bring its Epic Games Store, including Fortnite, to iOS devices under the new alternative app store policy. Additionally, Apple announced the inclusion of streaming game apps on the App Store worldwide, allowing services like Xbox Game Studios Publishing Cloud Gaming and NVIDIA GeForce NOW to be standalone apps on iPhones and iPads.
The EU's DMA regulations require technology companies to comply by March 6, 2024. While iOS 17.4 is in beta, its public release is scheduled for March. Apple's global implementation of these changes seems unlikely without similar legislation from other countries, given the company's emphasis on user privacy and security.
Netflix is encouraging its customers to shift away from paying for its streaming subscription through Apple's App Store. The company has updated its help site to inform members billed through Apple that they may need to change their payment plan. If a new payment method isn't added by the monthly renewal date, the member won't be able to use their Netflix account until a new payment method is provided. This change impacts members on Netflix's basic plan in countries like the United States and Canada.
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This move by Netflix aligns with longstanding concerns raised by apps in Apple's iOS App Store, which charges a 30% fee for all in-app purchases. Although Apple reduced its cut to 15% in certain situations, it has faced criticism for its fee structure. Netflix had already stopped accepting Apple payments for new and rejoining customers in 2018. However, this policy change means existing customers who were previously allowed to pay through Apple will now need to switch payment methods.
Apple's in-app purchase fees have been a contentious issue for app developers, leading to legal challenges. Last month, the US Supreme Court declined to review a lower court's order that required Apple to permit developers to add buttons or links directing customers to make in-app purchases through alternative channels. This decision was part of the ongoing legal battle between Apple and Epic Games, the creator of Fortnite, over antitrust allegations related to Apple's fee collection practices.
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