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Apple’s iPhone Ecosystem Faces Disruption: Epic Games Launches New App Store and Spotify Challenges Subscription Fees in Europe

Apple has long maintained tight control over its iPhone ecosystem. In Europe, his control is beginning to weaken. “Fortnite” maker Epic Games said Friday that it is launching another app store for iPhone users in Europe.

Spotify this week began directing Europeans on its iOS music streaming app to the company’s website to sign up for subscriptions, something it hadn’t previously allowed.

Apple said separately on Wednesday that it plans to allow developers in the United States and several other countries to offer secure contactless payments through their own apps on iPhones. Apple had previously promised to open contactless payment technology in Europe to solve an antitrust case in the European Union (EU).

The changes open up Apple devices to outside developers in new ways, allows third parties to bypass elements of your control and, in some cases, your fees. They show how a wave of new regulations, antitrust enforcement and decisions, many in Europe, are destroying the “walled garden” of Apple devices and software.

Apple has long argued that its approach supports user privacy and security. It has also become a profitable part of the company’s business model. Apple’s services unit, which includes the app store, generated $85.2 billion in sales during fiscal 2023, accounting for about 22% of total revenue.

Epic Games Store

Epic Games said on Friday that its new app store for iPhone users in Europe will initially offer three games: “Fortnite,” “Fall Guys” and “Rocket League Sideswipe.” These games will also be available through other app stores in Europe, starting with one called AltStore, Epic said.

The move builds on a recent EU law called the Digital Markets Act, which requires technology companies to comply with regulations to increase competition in digital advertising, online search and app ecosystems. Apple is also under pressure in the United States, being forced to allow developers to handle purchases outside the app store after the decision of a lawsuit brought by Epic.

Spotify campaign

Spotify said it was not satisfied with the changes Apple has made so far. Spotify began posting information about subscription prices in its iOS app on Wednesday after the company opted into a new program that allows music streaming apps to tell European users about alternative ways to make purchases.

However, users still can’t subscribe to Spotify directly through the company’s iOS app or click an in-app link to buy a subscription because Spotify doesn’t want to pay a commission to Apple, which it ‘ considered unfair. Apple declined to comment on the changes Spotify introduced this week.

With information from Economic value

2024-08-17 18:00:00
#threaten #Apples #dominance #app #store

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