Digital Markets Act  and  it's impact on Apple

The EU parliament has approved Digital Markets Act, and it might require Apple to allow downloading apps from third-party app stores and add a third-party payment option on App Store.

What is the Digital markets Act?

The DMA is a set of rules to ensure increased competition in the industry by limiting the power held by big tech companies (so-called gatekeepers). and allowing other market participants and third-party developers a fair ground.

Obligations under DMA

Under DMA, ‘gatekeepers’ should allow

➤ Users to download apps from third-party app stores

➤ Developers to include a payment solution of their choice

➤ Users to install/uninstall apps

➤ Change default settings

Impact on Apple

Apple will be heavily impacted by the Digital Markets Act due to its closed ecosystem and might have to bring several changes to its business model to abide by the new rules.

Tap to see how DMA will affect Apple.

App Store competitors

To comply with DMA, Apple will have to allow users to be able to download apps from App Store competitors or side loading of apps.

Third-party payment options

Apple will also have to allow developers to add a payment option of their choice on the App Store instead of using Apple’s own payment solution where developers have to pay a cut as commissions.

iMessage interoperability

As per DMA, companies are required to enable message interoperability between different platforms. Apple will need to make its iMessage service compatible with other messaging services.

DMA non-compliance

If Apple fails to comply with DMA, it can face fines of up to 10 percent of the company’s total global turnover. For repeated offenses, fines could be up to 20 percent of the turnover.

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