The European Union's new Digital Market Act forces tech giant Apple to loosen its tight grip on its iPhone platform. This new move would end how the company "taxes" developers that use the App Store to promote or sell their products.
Apple to Comply with the New Law on 2024 Which Will Give Developers More Control Over Their Apps
According to the story by Giz China, the company will comply with the law by 2024 and give developers more control over how their apps work. Apple's "walled garden" strategy allows the company strict control over the iOS platform, from the apps users can install on the iPhone and iPad to the payment system.
The potential consequences of the EU's new legislation could mean a major disruption to Apple's strategy. Until now, Apple has been able to manage a "closed off" ecosystem, with direct control over content and downloads, by enforcing its own terms of use. But with the new act, Apple won't have the same liberty to operate as it did before.
The New Law's Effects can be Seen in the Upcoming Apple iOS 17 Update
The effects of the new law could be seen in the upcoming iOS 17 update. According to reports, customers will be able to set up their own payment systems within apps - meaning users will no longer have to use Apple services such as Apple Pay. It will also mean that developers will no longer need to compete with Apple's proprietary features and features from the App Store.
It's unclear how much impact this policy change will have on Apple's smartphone platform. But if other countries with more lenient tech regulations manage to compete, Apple may find itself in a tricky position. Apple has long prided itself on offering a safe and secure environment for users and the opportunity to access top-notch content, but it won't be able to do this to the same extent when the app store opens.
The Public Will have to Wait and See How Apple Adjusts to the New Law
It's a risky move for Apple and will force the company to rethink its established way of doing business. The question is whether Apple can remain competitive in the ever-changing tech landscape. Only time will tell if the EU's new Digital Market Act can break Apple's walled garden.
The app economy has been a booming market for several years now, but Apple's "Apple Tax" is proving to be a major obstacle for developers and users alike. Apple requires developers to use their own payment processing service and take a 30% cut of in-app purchases.
This fee is meant to cover the costs of their App Store service, but it is widely viewed as an unfair practice by both developers and CEOs of major companies.
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