Apple executive claims that new EU digital regulations are going to make it harder for users of Apple products, and put them at risk of security threats.
Apple’s App Store head Phil Schiller said on Thursday that the new Digital Markets Act of the EU is forcing the company to make changes which will affect the user experience. Schiller added that the tech giant would be slower to detect and react to scams.
Appleis introducing historic changes to the iOS mobile software, App store and Safari browser in order to appease EU regulators who have long resisted such measures.
These changes will make it easier for users to download apps and access other app stores, as well as access alternative payment methods, and reduce fees for app developers.
Schiller, a former Apple marketing executive, says that the move to open up the closed software ecosystem will compromise the privacy and security of the products and services the company has built.
He said, “This isn’t our first pick.” “We want the highest standards everywhere, but we must also meet the legal requirements on the local market.
Schiller explained that “In the App store we have many signals we look for every day in order to stop scams.” “With these new markets, we won’t be able to see those issues.”
Schiller’s complaints are coming as the deadline for complying with the DMA approaches. In a law aimed at curbing the power of Silicon Valley firms, the EU has mandated that large tech companies such as Google, Amazon and Microsoft inform Brussels in March about how they comply with the DMA.
Apple announced on Thursday that it would introduce a new fee system in the EU to comply with the DMA. This will reduce the amount companies pay to use the App Store for selling digital goods and services, from 30% to 17%.
The company has however introduced new charges. These include a “core-technology fee” of $50 for developers who have apps with more than one million users. This charge is applied to the first payment made by each user. Apple will charge app developers who use its payment processor an extra 3 percent fee.
Tim Sweeney of Epic Games, the chief executive who sued Apple in the US unsuccessfully over its App store, claimed on the social media platform X, that the company “forced” developers to either use its App Store or face new “junk fee”. Sweeney warned that Apple could exclude the Epic Games Store on iOS if it vetting rival stores.
Apple is under increasing regulatory pressure from around the globe to change how it runs its iOS eco-system. Critics claim that Apple charges excessive fees, and restricts competition by controlling how apps are distributed.
The US Joe Biden administration, along with legislators, have studied policies that promote competition in the digital market but have not passed legislation similar to DMA.
The act, which has been in force since November 20, 2022 marks the EU’s effort to increase the competitiveness of digital markets by introducing legal requirements to the so-called gatekeepers who run the largest online platforms. Regulations include an obligation to share more information and open up their ecosystems to competitors.
This means that developers won’t be required to meet Apple App Store specific requirements for the quality control of content in alternative marketplaces.
Schiller said that there are risks to developers. Will there be any other [app store] that allows copycat apps or pirated versions of the apps? And will they get good exposure in terms of the exposure and visibility of their technology?
Apple will be able to check apps for malicious code using a new “notarisation system”. Apple will also let users download apps from other sources in order to avoid being tracked. Developers who launch their own iOS app stores will be required to adhere to security standards under an “authorisation” scheme.
Apple is also changing how iPhone users choose the browser they want to use. They will now be presented with a selection screen where they can select an alternative to Apple’s Safari browser as their default browser.