by Apple’s moves to allow EU customers to download apps without using its apps is paving the way for the Australian government to comply with its own legislation.
On Friday, Apple announced plans to overhaul how apps work on iPhones and other iOS devices to allow for more competition as part of a range of changes designed to comply with the EU’s Digital Services Act.
The company will also allow iPhone users to choose a different browser from the default, and use other payment systems than Apple Pay.
Apple did not respond to questions about why other territories, including Australia, were left out of the change, but indicated on Friday that they were not changes it would make unless they were required by EU law.
Related: Apple to allow EU customers to download apps without using the App Store
Apple and Google have faced pressure from developers and regulators around the globe in recent years over restrictions and fees of up to 30% per transaction in their respective app stores.
In November 2022, the Australian Competition and Consumer Commission (ACCC) made recommendations as part of its long-running digital platforms inquiry. He suggested the government establish a code of conduct to address anti-competitive behavior on the platforms, such as self-selection, unfair business dealings and barriers to interoperability and the ability for consumers to switch services.
In December last year, the Albanian government said it supported the proposals in principle, saying the regulator had presented a strong case for the code, and that some platforms had entrenched market power in particular services. .
However, the government said the framework would be a “significant undertaking” and tasked the treasury with developing a potential legislative framework that would require “extensive consultation”.
Assistant treasurer and financial services minister Stephen Jones said the government was finalizing a consultation paper “for a potential competition regime and will have more to say soon”.
That is the same as or worse than under the old rules
In December, the government said it was “closely monitoring international developments” and would ensure the development framework was consistent and integrated with overseas approaches.
Despite calls for changes to Apple’s model, the move was not welcomed by some of its harshest critics because developers who take advantage of the option to install an app outside of the app store will be charged a flat fee.
Epic Games CEO Tim Sweeney labeled the announcement “hot garbage” in a post on X last week. Epic is in litigation against Apple and Google in Australia over its app stores.
Spotify – which does not allow its customers to subscribe to its iPhone app – said Apple’s announcement showed the company does not believe the rules apply to them, and that features such as an annual fee per app download amounted to “extortion” of developers. .
Related: Apple and Google block cutbacks from in-app purchases in Australia
“Spotify, like so many other developers, is facing an inevitable situation. Under the new terms, if we stay in the App Store and want to offer our own in-app payment, we will pay a commission of 17% and a Euro Core Technology Fee of 0.50 cents per installation and year,” the company added on her blog. last week.
“This is the equivalent of us being the same or worse than we were under the old rules.”
Mozilla – the developer of the Firefox browser – told the Verge that the changes are as “painful as possible” for developers to offer an alternative to the Safari web browser.
A spokesperson for Apple said it was supporting the success of developers.
“We’re happy to support the success of all developers – including Spotify, which has the world’s most successful music streaming app. The changes we’re sharing to apps in the European Union give developers choice – with new options for distributing iOS apps and processing payments,” the spokesperson said.
“Each developer can choose to stay on the same terms that are in place today. And under the new terms, more than 99% of developers would pay the same or less to Apple.”
The company pointed out that because Spotify doesn’t currently allow users to subscribe through the iPhone app, it doesn’t currently pay Apple anything. Apple said the company could not continue to pay anything under the new EU system, but Spotify’s comments suggested the streaming music company wanted to offer new services without paying Apple for the value provided.
Epic Games’ case against Apple and Google in Australia alleges abuse of market power in banning Fortnite from the app stores for offering its own payment options. The case will be heard in federal court for three months starting in March. Epic won an antitrust lawsuit against Google in the United States late last year, but lost against Apple.
