In the space of a week, Apple made two sets of changes to its App Store rules. These changes are the subject of global litigation, regulatory investigations, and legislation, but these adjustments did not address the biggest concerns raised.
Legislators and regulators are considering abolishing the App Store business model, a result that could cost Apple 6% of its sales-equivalent to 16 billion U.S. dollars (approximately Rs 11689 crore) in the previous fiscal year-and cut According to last year’s estimation by analyst firm Cowen, its profits fell by 15%.
One of Apple’s most notable concessions is to allow Netflix and other subscription services to provide links to out-of-app paid registrations to avoid charging Apple commissions. But many large such companies have stopped using Apple’s payment system a long time ago, so this move is unlikely to affect Apple’s financial situation.
This shows that even if Apple wins the closest threat at hand-a US federal judge may at any time announce a ruling on the antitrust case brought by Fortnite game maker Epic Games, any struggle around Apple’s rules may continue.
“Mobile technology has become a necessity in our daily lives, and now only two app stores have incredible powers over which apps and how consumers can access them,” U.S. Senator Amy Klobuchar ( Amy Klobuchar) said this week that he is a Democrat and that he initiated an app store bill. “When you see the same problems appearing all over the world, it is more obvious that we need to take action.”
Some of the loudest calls are for Apple to allow other companies to run app stores on their iPhones, which will provide a way to bypass the current payment system, making it almost impossible for developers to avoid offering Apple discounts. Critics also want the company to abolish so-called guidance rules that prevent developers from telling their customers how to pay developers directly for their applications.
If developers are allowed to install software on iPhones without going through Apple’s App Store, they can completely circumvent Apple’s regulations, but Apple does not allow this, saying it will endanger users’ safety. Epic sought this change in the Fortnite antitrust case.
U.S. Democratic Rep. David Cicilline and Republican Rep. Ken Buck introduced a bill in the U.S. House of Representatives in June that, if the measure becomes law, it will also force Apple to submit to third-party stores. Open its iPhone.
In fact, all regulators around the world that review Apple—including competition authorities in the United Kingdom, the European Union, and Australia—are reviewing Apple’s in-app payment rules, as well as 15% to 30% commissions for digital goods. This is also the key to the legal action brought by Spotify and Epic against Apple.
South Korean lawmakers passed a bill this week banning Apple and Alphabet’s Google from requiring their payment systems.
This is the first place on Spotify’s wish list, and its CEO Daniel Ek (Daniel Ek) said on Twitter that the changes Apple has made so far “do not solve the problem.”
Last week, Apple ended the ban on communicating with users about alternative payments via email, and partially resolved the “turning rules” issue. This week, it said that a small number of “reader” apps that access media content purchased elsewhere are now A link to the paid registration page can be provided.
However, the game developers that generate most of the revenue for the Apple App Store still cannot direct their users to the paid registration page or otherwise guide them to make payments to avoid Apple’s commission.
“Apple’s latest statement seems to be another attempt to protect its App Store monopoly by dividing developers into winners and losers,” said a statement from the App Fair Alliance, which includes Epic Games.
© Thomson Reuters 2021