The coming into force EU digital market regulation forces Apple to prepare the opening of its application store.
Apple is preparing to open its app store as required by EU regulations. PDO
of the EU digital market act is scheduled to enter into force in the coming months, and the transition period will end in 2024. With the legislation, so-called gatekeeper companies will have to allow the compatibility of services provided by third parties with its own services to a certain extent.
Gatekeeper companies are operators that have a strong financial position and a significant influence in the EU internal market and that operate in several EU countries. The EU has also defined other conditions for companies. The purpose of the regulation is to create a fairer business environment in the EU’s internal market.
Apple has started actions to comply with the regulation. With the change, users of Apple products, iPhone and iPad, would be able to download applications offered by third parties that are not available in Apple’s own application store.
The EU has demanded compatible chargers for smart devices in order to avoid unnecessary hassles. PDO
A big slice off the fees charged by the app store?
The change also means a big financial change for the company’s app store. So far, Apple has charged up to 30 percent commission for products in its app store.
The two largest players in the market, Apple and Google, have dominated the products of their app stores and their pricing, which has made it challenging for new app developers to enter the market.
Bloomberg magazine by Europe is Apple’s second largest market, with sales of $95 billion. Correspondingly, in America, the turnover of the app store is 170 billion, and in China, on the other hand, it is around 74 billion.
Companies would hardly have the motivation to make changes to the application practices of their devices, if the law did not oblige them to do so. Appleinsider online magazine according to the estimate the change will certainly be prolonged until it finally has to be implemented. In addition, the company is expected to fight against the regulation with all possible means.
The company, as you might guess, appeals to safety. If it is possible to download, for example, non-Apple payment applications or external app stores to the devices, the security of users and the downloaded content may be compromised. In Japan, of course, payment options outside of Apple are already in use, where users can accept their payments on the website.
The company has not yet announced its decision on how it will actually react to the regulations. In the phones of 2023, Apple has planned to use USB-C charging, which is also required by the EU.
As a whole, Apple’s application store is about six percent of the company’s turnover, and Europe’s share is around two percent. Järi’s large financial loss for the company is therefore not a matter of regulation, but it can enable new and small players to participate in the market.