Apple has issued a warning to Australia, essentially telling the country not to follow the European Union's lead in making iPhone app sideloading a requirement. This communication comes as the Australian federal government considers new rules that could force Apple to open up its iOS ecosystem, much like what happened in Europe with recent legislation. Since iOS 17.4 and iPadOS 18, users in the EU have been able to get apps from outside the official App Store, a direct consequence of the DMA designating Apple as a "gatekeeper".
The Australian government floated a proposal in a paper released late last year. The paper suggested "designating" digital platforms like Apple's App Store. Being designated this way means these platforms would have to follow new rules intended to keep them from limiting competition. The government pointed to Apple's in-app payment system, which usually comes with a commission, and the lack of sideloading as likely targets for regulation. Right now, apps like Netflix and Spotify can't let users subscribe through their iOS apps without giving Apple a big cut, and they're not even allowed to tell users where to find a better deal.
Apple, in its response to this Australian paper, stated that Australia should not use the EU's Digital Markets Act "as a blueprint". The company's core argument is that the changes mandated by the EU's DMA, which came into full effect in March 2024, introduce serious security and privacy risks for users. Apple claims that allowing sideloading and alternative app stores effectively opens the door for malware, fraud, scams, and other harmful content.
The tech company also highlighted specific concerns from its European experience, alleging that its compliance there has led to users being able to install pornography apps and apps that facilitate copyright infringement, things its curated App Store aims to prevent. Apple maintains that its current review process is vital for user protection, and that its often criticized 30% commission applies mainly to the highest earning apps, with most developers paying a lower 15% rate or nothing.
It is worth noting that Apple's implementation of DMA requirements in the EU, which includes a "Core Technology Fee" for apps distributed outside its store, has already drawn scrutiny from European Commission officials who question if these measures truly comply with the DMA's idea of keeping the market fair.
The Australian government has not yet detailed its next steps in this process, and the Treasury still needs to publish the full submissions to its proposal paper, including Apple's complete arguments.
Source: The Guardian
15 Comments - Add comment