After extensive discussions and amendments in 2021 and 2022, the European Union has adopted the Digital Markets Act (DMA) and Digital Services Act (DSA) with the aim to protect user rights and create a more equitable balance of power between tech giants and their users, enhancing transparency and accountability. Apple, in its latest announcement to comply, sets a negative example of how to bend the rules.  

Apple's response to the DMA introduces limitations on sideloading and alternative app stores within the European Union, indicating a desire to maintain control over its ecosystem. While the DMA encourages diversity in the app market, Apple's conditions for alternative app stores and payment service providers may hinder competition and innovation. 

The DMA's emphasis on interoperability and sideloading broadens app access, especially for those reliant on niche apps not present in major app stores due to censorship or similar restrictions. Sideloading, in particular, serves as a workaround to government or corporate censorship, offering access to a wider range of uncensored apps and services, a critical resource for individuals in countries with severe government censorship. 

However, Apple's interpretation of ‘sideloading’ as per the DMA is quite restrictive. They describe it as "the process of downloading iOS apps from places other than the official app marketplace. In the EU, users will have the option to access alternative marketplaces offering apps for download." This implies that direct internet downloads of apps are not permitted, underscoring Apple's intent to retain significant control over its app ecosystem.  

Benjamin Ismail, director of the AppleCensorship project, highlights a significant contradiction. He points out, “Apple boldly challenges the EU Commission, claiming that 'Across every change, Apple introduces new safeguards that reduce — but don't eliminate — the risks the DMA poses to EU users.' Yet, it cooperates directly with censorship regimes worldwide without attempting to mitigate, challenge, or find workarounds for the impact.” 

Financial Disincentives for Developers 

Furthermore, Apple's new commission structure poses a potential financial burden on developers. It includes a reduced commission, a payment processing fee for using the App Store’s system, and a Core Technology Fee (CTF) for high-volume apps.  

The CTF, in particular, could disproportionately place greater financial burden on developers with popular but low-revenue apps, such as human rights or security related apps, undermining benefit from reduced commissions. This complex fee structure, which will undoubtedly deter developers from exploring alternative distribution or payment methods, further consolidates Apple's control over the app market. 

Superficial Compliance Sets Damaging Precedent 

Apple's restrictive responses limit developer freedom and consumer choice, reinforcing its app distribution dominance and undermining the DMA's aim for a fair, competitive digital market. This necessitates further regulatory scrutiny and intervention. 

Apple's superficial compliance strategy not only endangers developers and users but also carves a perilous path, showing how companies can cunningly bend the system for their own gain. 

If Apple's approach is allowed to stand, it may serve as an incentive for other tech firms to emulate these tactics and feign compliance with regulations while maintaining a stranglehold over their digital realms. It would eventually bolster the dominance of big tech companies, directly contradicting the core principles of the DMA – to bring contestability and fairness in digital markets. 

Potential Spill-over Effect 

As other countries such as South Korea, Taiwan, and the United Kingdom craft their regulatory policies, the global community closely observes the DMA's implementation. This heightened attention may inspire regions worldwide to adopt similar measures, extending benefits such as interoperability and sideloading to users beyond the EU. GreatFire emphasizes the need for Europe's influence to safeguard digital rights globally. 

It is critical to acknowledge the potential spill-over effect, especially for users under authoritarian regimes. We advocate for regulations akin to the EU's DMA, calling for more robust frameworks to protect developers' and users' rights, often compromised by tech giants' monopolies.  

Apple's evasion of the DMA requires a firm, immediate response from the EU Commission. To avert such a scenario, it is imperative that the European Commission takes on a more assertive role in ensuring that tech giants like Apple wholeheartedly adhere to the DMA's principles.