Apple Finally LOST.. (or did they?)

Summary

The EU has filed antitrust lawsuits against Apple over the past decade regarding the App Store's policies and commissions. Epic Games sparked further scrutiny by circumventing commissions in Fortnite, leading Apple to ban it. Though Apple won its case against Epic, other companies like Spotify filed similar complaints. A new EU law forced Apple to allow third-party app stores and reduce commissions in EU. While a win for developers, Apple fights back with barriers like fees and warnings to disincentivize using third-parties. This is just the start of Apple's antitrust war as it tries balancing compliance and profitability.

Takeaways

• 😤 After a long legal battle, Apple has surrendered to EU antitrust regulations and made major changes to App Store policies
• 👮‍♂️ The battle began years ago over tax issues and monopoly accusations against Apple
• 🎮 Epic Games sparked further conflict by avoiding App Store fees in Fortnite
• 🤝 Multiple companies have since filed antitrust complaints against Apple's practices
• ⚖️ Apple lost a major 2022 court case forcing tech companies to use USB-C ports
• 📱 The EU Digital Markets Act then forced additional App Store changes from Apple
• 🔓 iOS 17.4 enables sideloading, third-party stores and payment systems in the EU
• 💰 Apple has reduced its app commission fee to 10-15% in the EU market
• 😠 But Apple fights back with barriers like fees and warnings against third-party stores
• 🤬 Epic Games CEO calls Apple's concessions a 'horror show' of loopholes

Q & A

When did the EU first accuse Apple of tax avoidance in Ireland?

In 2013, the European Union accused Ireland of giving Apple massive tax breaks which allowed Apple to save billions of dollars in taxes.

What was Epic Games' strategy against Apple regarding Fortnite?

Epic Games introduced a direct payment option in Fortnite to avoid Apple's 30% commission fee. This led to Fortnite being banned from the App Store, after which Epic launched a campaign against Apple's app store monopoly.

What antitrust complaints have been filed against Apple in the EU?

Companies like Spotify and Epic Games filed antitrust complaints against Apple in the EU, accusing Apple of anticompetitive behavior and App Store monopolization.

How did the EU force Apple to adopt USB-C charging?

In 2022, Apple lost a court case in the EU which outlined a plan to force tech companies to use a single charging port, USB-C. This directly targeted Apple's Lightning port.

What changes is Apple making to the App Store in the EU?

Apple will allow third-party app stores, sideloading, third-party payment systems, and reduce App Store commissions to 10-15% in the EU. Game streaming apps will also be allowed.

How is Apple trying to undermine third-party app stores?

Apple warns users that third-party app stores offer worse experiences. Also, a $1M letter of credit is required to launch a store, and fees are charged for installs over 1 million.

Why might free app developers stick with the App Store?

Apple's new 50 cent per install fee above 1 million installs will make third-party app stores costly, especially for free apps. The 20% App Store commission may be preferable.

How did Epic Games react to Apple's announced changes?

Epic Games CEO Tim Sweeney called Apple's announcement a "hot garbage horror show" on Twitter. The changes don't seem to satisfy Epic.

How does sideloading on iOS differ from Mac OS?

On Mac OS, third-party apps can be downloaded freely online. But on iOS, Apple is still restricting sideloading and charging developers fees, keeping the ecosystem locked down.

What is next in Apple's antitrust battle?

This is just the beginning of Apple's antitrust war. As Apple makes concessions in the EU, it may face pressure to change in other countries too.