EU Regulators Warn 'Strong Action' if Apple Fails to Deliver Significant Changes in DMA

Apple could face "strong action" once the EU regulators see that the changes to the App Store are not sufficient to comply with the Digital Markets Act (DMA).

Starting March 7, Apple is expected to allow iPhone users to download alternative app stores and give options to opt-out of its in-app payment system that charges up to 30% fee.

Critics See Apple's Changes Remain Unfair

Earlier this week, Apple announced its intention to allow sideloading which lifts off the current restrictions and commission payments of the company. However, critics argued that Apple's fee structure remains unfair and could still violate the DMA.

In an interview with Reuters, EU industry chief Thierry Breton said that in March, the regulators will start to assess the companies' proposals, along with the feedback from third parties.

"If the proposed solutions are not good enough, we will not hesitate to take strong action," he added. Apple previously stated that sideloading will be allowed but developers will have to wait for Apple's review before getting approved.

Third-Party Companies Complaints Apple Fees are Still High

Despite opening the option for other web browsers and contactless apps outside Apple's default apps, developers will still have to pay a core technology fee of 50 euro cents per user account per year.

"This was definitely a good move, but the fees are still too high. We are preparing to send formal feedback to the European Commission," CEO of alternative app store Aptoide, Paul Trezentos, said.

Spotify CEO Daniel Ek called it "extortion, plain and simple." He also added how big of an impact the fees would have on popular apps like WhatsApp, Duolingo, X, and Pinterest, which all offer free services to their users but will get taxed by tens to hundreds of millions.

Meanwhile, the European Commission that they have already noted Apple announcements but would not comment yet. In the meantime, the regulation encourages the gatekeepers to test their proposals with third parties.