EU Digital Markets Act to Bring Radical Changes to Apple’s iPad Ecosystem
May 5, 2024
The European Union’s Digital Markets Act, aimed at preventing monopoly abuses, has designated platforms as gatekeepers. Consequently, Apple has made significant changes to the iPhone ecosystem for EU users, and now the tech giant has confirmed that similar changes are forthcoming for iPad users.
The Impact Beyond the EU
While the changes will directly affect EU users, other governments around the world will keep a close watch on these developments to determine whether similar legal changes are warranted in their countries.
Apple’s Confirmation
On May 2, Apple provided a news update for developers confirming that the changes initially implemented for the iPhone, under the EU’s six-month compliance timeline, will also be extended to the iPad this fall.
Apple stated, “This week, the European Commission designated iPadOS a gatekeeper platform under the Digital Markets Act. Apple will bring our recent iOS changes for apps in the European Union (EU) to iPadOS later this fall, as required. Developers can choose to adopt the Alternative Business Terms for Apps in the EU that will include these additional capabilities and options on iPadOS, or stay on Apple’s existing terms.”
Extensive Changes for iPad Users
The changes for iPad users include the allowance of alternative app marketplaces, additional browser options that are not limited to WebKit, customizable default search engines, and expanded contactless payment methods. These alterations are already shaping the EU’s digital landscape.
Developers’ Factors and Requirements
While developers still have the choice to remain App Store-only, Apple’s move to embrace the iPad ecosystem holds the potential to transform the market.
For app developers who opt for alternative marketplaces, a Core Technology Fee (CTF) is required for downloads beyond the first million installs. However, Apple has clarified that if the same app is installed on both the iPhone and iPad, it will count as one install. This provision aims to mitigate the impact of the one million threshold.
Additional News Updates
May 5, 5.42 a.m. update – Apple has made another significant change to the CTF. Apps downloaded on both the iPhone and iPad will be considered as one install.
May 5, 2.30 p.m. update – Small developers will enjoy better protections from the CTF. Apple proposes a three-year on-ramp without cost and a capping scheme based on revenue thresholds. Small developers will only have to start paying the CTF after having exceeded one million first annual installs and attained global revenue ranging between €10 million and €50 million within the three-year on-ramp period.
Enduring Transformations
These changes introduced by the EU will fundamentally alter the functionality and operations of both the iPhone and iPad within the European Union. It is highly likely that other countries will adopt similar legislation to induce comparable shifts in Apple’s practices, leaving one question remaining: when will these changes occur, rather than if?
