Nobody's fight: It's not Meta & Microsoft vs Apple, but more Apple vs EU rules

As per reports, Microsoft and Meta are lobbying the EU to reject Apple’s new terms in response to the DMA (Digital Markets Act). With the March 7 deadline for compliance fast approaching, it looks like Apple will be forced to make changes to its new policy.

The new €0.50 Core Technology Fee levied on developers is supposedly the bone of contention between the tech giants. According to the new terms released by Apple, iOS apps distributed from the App Store and/or an alternative app marketplace will pay €0.50 for each first annual install per year over a 1 million threshold.

This led to Xbox repealing its decision to launch Cloud Gaming on iOS. Others across the tech community share similar sentiments. Daniel Ek, CEO of Spotify, calls Apple’s new terms vague and misleading. Epic Games CEO Tim Sweeney calls it a “devious new instance of Malicious Compliance.”

But it’s not just the developers who are affected. Consumers like us, too, will miss out on safeguards and the ability to go with third-party developers offered by DMA if Apple’s new terms are accepted.

What’s the general consensus on the whole EU vs Apple situation?

Surprisingly, people are more aware of the situation than we expected. And they are calling out Apple! Here’s what the majority of the people wrote in a Reddit post,

This isn’t Meta vs Apple. If the EU decides charging a fee for every app install is illegal, it’s a win for consumers. If the EU decides crippling web apps is illegal, it’s a win for consumers.

Apple is also the only company that gives you no option but to use their App Store on their general computer ecosystem. I can install Gog on my Steam Deck and PC. Apple makes that impossible on their OS.

The more is Apple pushed by EU the better for both end consumers – Apple users – and app developers like me.

I think most Apple users don’t really have problem with that, if they did then they would not be on Apple in the first place. In fact, Apple users are fine paying extra just to use these restrained “premium devices”.

I’d love it if my relationship with Apple could be where I pay them directly for the products and services they provide and I pay everyone else directly for the products and services they provide.

It seems people are more worried about their favourite apps not coming to iOS, say Xbox Cloud Gaming. Developers, on the other hand, are concerned about the added expense in the form of fees paid to Apple.

As per Apple’s estimate, under the new terms, 99% would pay the same or lower fee while less than 1% would be charged the Core Technology Fee. Major developers, however, believe that they will end up paying more than they can actually generate after deploying their apps on iOS.

A few support Apple’s decision

Some have surely come out in support of Apple, citing a more secure infrastructure if app deployment and payments are processed through Apple’s native App Store.

But as a consumer I chose Apple because I knew apps would only have to be installed from one trusted source, not worry about loading up random app stores or having developers only let me get theirs from secondary untrusted sources. If I wanted different I would choose android.

Only a very tiny sub-section of almost two billion iOS users would be “losing” here, whatever that means. The overwhelming majority of consumers outside the tech community would much rather prefer a centralized app store and payment system where all their downloads, purchases, and subscriptions are in one place

It remains to be seen how the EU will respond to Apple’s updated terms. It could outright reject them, citing non-compliance with DMA, and impose a fine or give the Cupertino-based tech giant another deadline to comply.

The latter seems most likely as it will amicably settle the dispute. A fine, on the other hand, will be contested by Apple, and we may witness another long-drawn legal battle.

Though it won’t be the first time Apple is fined by the EU. Reports claim that the EU may slap a €500 million ($539 million) penalty on Apple after a complaint by Spotify.

Do you believe Apple is right in its response to DMA or whether the new terms need a complete overhaul? Share with our readers in the comments section below.