EU is dissatisfied with Apple's ``core technology fee'' set to comply with digital market law



The Digital Markets Act (DMA), which obliges big tech to act openly and fairly, has come into force in the EU, and each company is taking steps to comply with the DMA, but one of them is Apple. It has become clear that Margrethe Vestager of the European Commission has a negative view of the ``core technology usage fee'' established in the DMA fee structure, saying that it ``obstructs people from receiving the benefits of DMA.'' I did.

Exclusive: EU's Vestager warns about Apple, Meta fees, disparaging rival products | Reuters

https://www.reuters.com/technology/eus-vestager-warns-about-apple-meta-fees-disparaging-rival-products-2024-03-19/



EU Competition Chief Suggests Apple's Core Technology Fee May Not Be DMA Compliant

https://www.thurrott.com/apple/299791/eu-competition-chief-suggests-apples-core-technology-fee-may-not-be-dma-compliant

DMA is a law in which the EU designates large platform operators as 'gatekeepers' and obligates them to act fairly. Six companies were designated as gatekeepers: Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta, and Microsoft.

What will change in the future with 'DMA' where the EU obliges Apple, Google, Meta, Amazon, Microsoft, and TikTok to act openly and fairly? -GIGAZINE



In January 2024, Apple established new rules that allow app distribution and payment outside of the official app store, the App Store, in order to comply with the DMA.

Apple allows sideloading and payments outside the App Store in the EU in response to the Digital Markets Act, but strict conditions and new fees will be added - GIGAZINE



However, in order to distribute an app on an external app store, the app must be certified by Apple, and payments outside the App Store will be subject to a ``core technology usage fee'' of 0.50 yen per year depending on the number of installs. Payment in euros (approximately 80 yen) was decided.

Apple's ``core technology fee'' of approximately 80 yen per install for iOS apps could bankrupt developers of free and freemium apps - GIGAZINE



Vestager told Reuters: ``One of the things we are very interested in is, for example, whether Apple's new pricing structure is attractive for people to enjoy the benefits of DMA. 'We will do so,' he said, expressing dissatisfaction with the establishment of a 'core technology usage fee.'

On the other hand, Vestager is cautious about Meta's move to lower the price of its ad-free paid plan.

Paid plans that can completely remove ads on Facebook and Instagram may be significantly reduced in price - GIGAZINE



Privacy activist Max Schrems pointed out that the Meta incident was ``not about money,'' but Vestager said, ``In order to monetize the service, we need to narrow down the targets displayed based on data.'' I think there are many ways to do this, such as advertising and contextual advertising.' 'I think it's important to continue to have a dialogue with Meta, and ultimately I think that Meta will become a DMA. 'I think we will be evaluating our next steps to comply with this.'

in Mobile,   Software, Posted by logc_nt