Apple faces the challenge of meeting the European Union Digital Markets Law (DMA) starting next year, which could result in significant changes to your business approach. The DMA seeks to increase competition in the tech market and ensure a level playing field for startups by limiting the power of tech giants. In the case of Apple, this means that you will need to allow third-party app stores. On the other hand, Apple is expected to argue that the monopoly of the app store It is essential to protect the safety of users.
But… What is the DMA?
The DMA (Digital Markets Act) is a fundamental piece of the antitrust legislation of the European Union specifically targeted at tech giants. The main goal of the DMA is to foster competition by limiting the advantages and power of dominant market players and, at the same time, facilitating the participation of startups on a level playing field. The DMA sets out an exhaustive set of rules and regulations that apply to large online platforms. It introduces the concept of “intermediary”, also known as “gatekeeper”, which refers to those companies that have a strong economic influence and a significant impact on the internal market of the European Union. The goal is to regulate these companies to promote fair competition and protect consumers and other market participants. Whether the DMA makes the right decisions or not is another matter. What is clear is that Apple, in this case, is not interested in giving in by allowing developers to use third-party payment systems, for example.
What will Apple have to do to meet the DMA requirements?
To comply with the legal obligations established by the European Union and in accordance with the intentions of said entity, Apple faces three key requirements. First of all, you must allow developers to use third-party payment systems instead of being limited to the exclusive payment platform of the App Store. Secondly, Apple will have to break the monopoly that it currently has on the installation of applications, opening the ability for users to access other app stores on their devices. Finally, Apple will be required to make its messaging service, iMessage, be interoperable with other existing messaging platforms. This means that Apple will be forced to make its messaging service, iMessage, able to exchange messages with third-party messaging applications, such as WhatsApp, Facebook Messenger or Telegram.
Again, Apple is expected to take all necessary and proportionate precautions to prevent third-party applications or stores from compromising the security of users. This would be Apple’s main weapon to be able to challenge the legislation in court.
Will Fortnite return?
Apple’s compliance with the DMA could also mean the return of fortnite to Apple devices. Fortnite is currently absent from the App Store due to a dispute between Apple and Epic Games about store policies and platform commissions. However, if Apple is forced to allow third-party app stores, it may open the door for Epic Game’s return as a Fortnite distributor. This could happen through an alternative store on our Apple devices and would have a huge impact on the mobile gaming industry as well as Apple users in general.
In summary, Apple faces a significant challenge in having to comply with the requirements set forth by the DMA, which could have significant implications for its business strategy. March 5, 2024 is presented as the final date to determine how Apple will address this situation and if it will seek to challenge the law in any way. The final result will be decisive in understanding the real impact of the DMA on the company and how it will adjust to new regulatory requirements. It will certainly be interesting to see how Apple responds to this challenge and how this may affect the landscape of the tech industry in the future.