Over the last few years, we’ve slowly noted the various changes Apple has had to make to keep operating in Europe. These span both hard and software, and while the company is keen to retain its presence in the market, it’s coming at the cost of some of its core offerings. Most recently, the European Commission’s Digital Markets Act (DMA) has significantly impacted major tech companies like Apple, Google, and Meta.
In an effort to loosen their ties to the industry, in their respective fields, the DMA is hoping to increase competition and open the industry to new players. Of particular interest is the effect this will have on Apple’s App Store. After 15 years of being the sole option for application downloads, the App Store will now be introducing third-party apps and payment gateways, opening up a whole new world for iPhone users, and a brand-new market for app developers. Here are the changes Apple has implemented for the European market.
Making Hardware Easy: Hello USB Charging
The first big, material change to Apple’s core offering came in the form of its charging port. Spurred by the EU’s Radio Equipment Directive, the regulators decided on “one charger to rule them all,” effectively eliminating Lightning, Apple’s signature charging cable. Sleek, lightweight, and able to fit your phone no matter which side you use, Lightning is indicative of Apple’s willingness and ability to enhance every aspect of the user experience. No detail is too small.
But while some are mourning the loss of the iconic connector, others are delighted to finally have one charger that can work across the entire spectrum of devices, from their cellphones and game consoles to Kindles and headphones. Eliminating the need for multiple cords and chargers is a win for consumers, but also the environment.
Beyond the convenience and long-term environmental benefits, there are practical upsides to consider. First, USB-C chargers are simply faster. They beat Apple in both data and power; transmitting as much as 40 Gbps to Lightning’s 40 Mbps, and carrying 240W in comparison to Apple’s 20W.
Apple believes that prescriptive regulation stifles innovation, but the EU disagrees. “European consumers were frustrated long enough about incompatible chargers piling up in their drawers. We gave industry plenty of time to come up with their own solutions, now time is ripe for legislative action for a common charger,” says Margrethe Vestager, executive vice-president of the European Commission. But the long arm of European law stretches further than just forcing Apple to conform in terms of hardware.
Open Up the App Store
Whether you consider it a hallmark of Apple exclusivity, or the limiting factor preventing you from downloading the apps you really want, the App Store has prevailed for the last 15 years as a closely guarded asset. The App Store has 1.08 million apps to Google Play’s 3.718 million. The majority of Apple fans have had high hopes that with the implementation of the DMA, they would have access to a much broader range of applications and games.
With changes being made to Apple EU, the broader market has anticipated a trickle-down effect, with hopes that sideloading will become a global feature. Speculatively, it would seem that this is not to be. With Apple set to comply with the Act, effective March 7th, there is little evidence to suggest these changes will make their way across the pond.
For Apple users across a number of European member states, the DMA will open up a whole new world of mobile apps, with the most highly anticipated changes related to gaming. With the newly launched mixed reality device, the Vision Pro VR Headset, European customers will have the opportunity to try out games that would otherwise have been inaccessible.
According to the European Commission, that is exactly the point of the DMA; give consumers real choice by opening up the industry and reducing the monopoly companies have in the tech marketplace.
Apple’s Response to the DMA
Apple released a statement in response to the European Commission’s Digital Markets Act. In it, they outline the changes being made to the App Store and iOS, with a certain amount of discernible disdain. Apple carefully and rigorously vets every application before granting approval to their store. This has been a major drawcard for many of their users, who are assured that the apps they download meet Apple’s standards, which include:
- Ensuring the latest technology and code is used in apps that are compatible with iOS
- Verifying the apps are original and relevant, and not just a copy of a more popular app
- Accurately rating apps according to the content they provide
- Ensuring apps do not hide malicious code or collect user data
These checks and balances have given the App Store a level of credibility and security that has in turn given customers peace of mind. It’s a major part of what makes the company so successful; apart from the sleek design and innovation, Apple has earned the trust of its customers by making security a cornerstone of its offering. It’s not impossible to imagine that compromising a key offering has left a sour taste in the mouths of Apple executives.
In order to comply with the DMA, Apple has made several changes to the App Store, most of which are aimed at onboarding developers who may not have had access to iOS-run devices in the past.
For the Developers: Material Changes to Onboarding Apps
As part of the mandated changes, Apple has expanded to include 600 new APIs, increased app analysis, improved functionality for browsers other than Safari, and added new payment gateways besides Apple Pay. With each new element, they’re prioritizing the safety and security of customer devices and information in an effort to reduce the risk they feel the DMA mandate poses to their European customers.
The concerns Apple has raised about how the DMA poses risks to safety and security are notably valid. Champions of the Act argue that Apple’s use of its own payment gateway, Apple Pay, is nothing more than an attempt to continuously extort more money from its customers while giving them little choice. However, Apple’s position has always been to prioritize the protection of customer data. By opening up the App Store to third-party payment gateways, they face new threats; from malware and fraud to illicit content and privacy breaches.
In order to meet the EU’s new laws, while limiting threat exposure, Apple will be introducing Notarization for iOS apps. This adds a protective layer, through a series of “automated checks and human reviews”. Despite these guardrails, the organization cautions that threats are still imminent.
Phil Schiller, Apple Fellow, best summarized Apple’s response, stating, “The changes we’re announcing today comply with the Digital Markets Act’s requirements in the European Union while helping to protect EU users from the unavoidable increased privacy and security threats this regulation brings. Our priority remains creating the best, most secure possible experience for our users in the EU and around the world.“
When the DMA comes into effect in March, European customers can expect a resource guideline to help them navigate the various changes. While every effort has been made to retain the sleek and simple Apple experience, the iterations have come at the cost of the intuitive UX users have grown to love. The guide will also explore best practices and outline the risks connected to downloading apps and making payments outside the Apple ecosystem.
Conclusion
The European Union has, through various legislative instruments, namely the Radio Equipment Directive, and the Digital Markets Act, forced Apple to change its products fundamentally. By March 2024, the new iPhone will have ditched the iconic and distinctive Lightning charger, for a USB-C cable.
The EU hopes that by introducing a single charging cable, they can positively impact the environment and reduce consumption by unifying devices through a singular charging system. While Apple has chosen to comply, rather than lose their European customer base over legislation, they’re not ecstatic about the perceived overreach from Brussels.
In meeting the regulatory requirements of the EU, not only have they sacrificed their signature Lightning cable, they’ve had to open up the App Store. This has long been a beacon of Apple’s quality; a testament to their rigorous security and customer protection. Innovation, security, simplicity, and exclusivity are the hallmarks of Apple, the core identity of the brand. In efforts to meet the legislative requirements of the European Commission, these core values have been compromised.
