Soon, Australians will have the opportunity to download apps from sources outside the Apple App Store and circumvent additional fees on iPhone purchases, thanks to a proposal from the federal government. However, tech companies have expressed concerns that competition regulations similar to those in the EU might jeopardize security and adversely affect competition.
Currently, Australian users can’t subscribe to services like Netflix or Spotify through the iOS app. Additionally, Google imposes a premium for YouTube subscriptions via the App Store, while Amazon does not permit Kindle users to buy e-books through the app.
The reason for this is that Apple imposes a fee of up to 30% on in-app purchases, significantly impacting high-grossing apps. Due to Apple’s policies, companies are restricted from guiding customers on alternative purchase methods.
In released papers last November, the government proposed to “designate” digital platforms like the Apple App Store.
This would compel these platforms to meet obligations aimed at mitigating what the government perceives as anti-competitive practices.
The document underscores Apple’s preferred in-app payment structure as an example of behaviors that regulatory entities could target. This would facilitate users downloading apps from outside the official app store, a process known as sideloading.
In response to the proposal, Apple cautioned that the government should refrain from adopting the EU digital market as a “blueprint” for its strategy.
Apple stated, “DMA demands adjustments to Apple’s ecosystem, which may elevate privacy and security threats to users, create opportunities for malware, fraud, and expose users to illegal or harmful content.”
The company asserted that the 30% fee applies only to the highest-grossing apps, emphasizing that about 90% of transactions on iOS apps do not incur Apple’s cut. Many developers reported being charged a lower fee of 15%.
Apple has also expressed concerns about sideloading apps, highlighting security issues that could arise if users install apps without any vetting process. The EU indicated that such apps could include explicit content or tools for copyright violations.
This process would enable users to download apps on MacBooks and other conventional computing devices. Conversely, the Android platform accommodates sideloading apps and third-party transactions outside the Google Play Store.
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Apple has also indicated that the DMA is responsible for delaying the rollout of its AI features.
Foad Fadaghi, managing director and principal analyst at Telsyte, mentioned that while opening the Apple platform could benefit some users, the majority are unlikely to alter their usage of the iPhone.
“Users may have concerns about enhancing security and privacy with Apple devices. In many cases, we select lockdown mode as the default,” he noted.
Australia isn’t isolated in this regard; Apple faces restrictions and legal challenges surrounding its App Store controls in Asia, Europe, and the US. The company adheres to local regulations but resists pressure to maintain uniform App Store practices globally. Apple previously modified its hardware worldwide to comply with EU regulations mandating a USB-C connector.
The government has yet to announce the next steps in this process, and the Ministry of Finance has not yet released submissions to the paper.
The federal court ruling regarding Epic Games’ lawsuit against Google concerning App Store practices is still pending nearly a year after the hearing concluded.
Source: www.theguardian.com
