Apple Rolls Out iOS, Safari, and App Store Updates in EU to Meet DMA Standards

Apple has unveiled modifications to iOS, Safari, and the App Store within the European Union to align with the Digital Markets Act (DMA). These adjustments introduce over 600 new APIs, enhanced app analytics, support for non-WebKit browser engines, and alternative methods for app payment processing and distribution. However, these changes also introduce new privacy and security risks for EU users, which Apple aims to mitigate with new safety measures.

Developers are encouraged to explore these changes on the Apple Developer Support page and can start testing the new features in the iOS 17.4 beta. The updates will be accessible to users in the 27 EU member states from March 2024. Phil Schiller, Apple Fellow, emphasizes that while complying with the DMA, Apple’s focus remains on offering a secure user experience, and developers can choose to stick with the current business terms if they prefer.

The DMA has identified iOS, Safari, and the App Store as "core platform services." To help users navigate the changes, Apple will provide new resources in March, including guidance on the complexities and best practices for mitigating new risks associated with alternative app marketplaces and payment methods.

Changes to iOS in the EU

• App Distribution: Developers now have new avenues to distribute iOS apps via alternative app marketplaces, with APIs and tools to support this.
• Alternative App Marketplaces: New frameworks and APIs are available for marketplace developers to manage app installations and updates.
• Browser Engines: Developers can now use alternative browser engines for their browser apps and in-app browsing experiences.
• Interoperability Requests: A form is provided for developers to request additional interoperability with iPhone and iOS hardware and software features.
• Contactless Payments: New APIs enable the use of NFC technology in banking and wallet apps, and users can set a third-party contactless payment app as their default.

Apple is implementing safeguards such as Notarization for iOS apps, app installation sheets, authorization for marketplace developers, and additional malware protections to reduce risks when users download iOS 17.4 or later from March.

Changes to Safari

EU users can set a third-party web browser as the default upon first opening Safari in iOS 17.4 or later, as required by the DMA.

Changes to the App Store

• For developers, the App Store will offer new options for using payment service providers within apps and for processing payments via external links. Apple will also provide business planning tools to help developers understand the implications of new business terms.

• For EU users, Apple will introduce App Store product page labels and in-app disclosure sheets to inform about alternative payment processing. New App Review processes will ensure accurate communication about these transactions, and expanded data portability will be available on Apple's Data & Privacy site.

However, Apple cannot provide support for refunds or customer issues related to apps that use alternative payment processing. Certain App Store features like Report a Problem, Family Sharing, and Ask to Buy will not be available for these transactions.

New Business Terms for Apps in the EU

Apple offers new business terms for developers in the EU, which they can choose to adopt or remain on existing terms. The new terms are designed to accommodate the DMA’s requirements for alternative distribution and payment processing. The terms include a reduced commission, a payment processing fee for using the App Store's system, and a Core Technology Fee for apps exceeding a certain threshold of installations.

Revised Business Terms for EU iOS Apps:

1. Commission Structure: The commission rates for iOS apps on the App Store have been adjusted. Most developers, as well as subscriptions after their first year, will be subject to a 10 percent commission. For other transactions involving digital goods and services, the rate will be 17 percent.

2. Payment Processing Options: Developers have the choice to utilize the App Store's payment processing system for a supplementary fee of 3 percent. Alternatively, they can integrate a payment service provider within their app or direct users to their website for payment processing without incurring any additional charges from Apple.

3. Core Technology Fee: For iOS apps that are downloaded from either the App Store or alternative marketplaces, a fee of €0.50 will be levied for each first annual installation above a threshold of 1 million installations per year.

Developers can find more information on the Apple Developer Support page and test these capabilities in the iOS 17.4 beta.

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