Apple Under Fire By Meta and Microsoft for its 'Malicious' New App Store Terms

By Thea Felicity

Feb 21, 2024 08:16 AM EST

(Photo : Photo by MANJUNATH KIRAN/AFP via Getty Images)
A woman browses on an online store the Indian app platforms Roposo and Sharechat in Bangalore on July 2, 2020. - Millions have joined homegrown social media platforms after India banned 59 Chinese apps, including TikTok, amidst a growing showdown between the neighbours, industry officials said.

Apple's new app store terms are causing a stir among experts who argue that the tech giant is trying to play by the rules of the EU's Digital Markets Act while actually going against its spirit.

These new terms, introduced in iOS 17.4, allow developers to sell their apps outside of Apple's official App Store or adhere to alternative terms if they remain within it.

However, 9to5mac reports that critics are slamming Apple for 'malicious compliance.' While Apple is following the antitrust law, its terms essentially undermine its purpose.

One major concern is that Apple's terms make it incredibly challenging for developers to profit outside of the App Store. For instance, Apple would still take a 27% commission on sales outside its ecosystem.

Besides that, the alternative terms for European developers include a €0.50 per install per year fee. This could be unfeasible for many apps, particularly those that are free.

Meta and Microsoft on Apple's New App Store Terms

In response to these concerns, both Meta and Microsoft have taken action by lobbying the EU to reject Apple's new terms. They argue that the terms are burdensome and restrictive for developers.

Microsoft's gaming chief, Phil Spencer, highlighted that Apple's initial steps to comply with the Digital Markets Act hinder the creation of meaningful alternatives to the App Store.

Meta CEO Mark Zuckerberg also criticized Apple's proposal, indicating that even Meta may not opt for these terms in the EU.

Furthermore, Damien Geradin, a lawyer for developers critical of Apple, urges small developers to voice their concerns to the EU. He believes the EU needs concrete examples of how Apple's terms are impractical.

Now, the EU is tasked with deciding whether Apple's new app store terms align with the Digital Markets Act. Many anticipate that the decision will not favor Apple, with analysts suggesting that the European Commission may reject the terms and request new proposals from the company.

However, the outcome remains uncertain, and the tech giant could face significant fines for non-compliance.

Industry