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Updated February 2nd, 2024 at 08:58 IST

Apple’s new App Store rules are onerous: Mark Zuckerberg

Meta is unlikely to take advantage of the alternative app stores provided by Apple due to the perceived difficulties.

Reported by: Business Desk
Mark Zuckerberg
Mark Zuckerberg | Image:AP
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Zuckerberg on Apple: During Meta's Q4 earnings call, CEO Mark Zuckerberg expressed criticism towards Apple's compliance with the EU's Digital Markets Act (DMA) regulation. The DMA mandates Apple to open its App Store and allow developers to use their payment systems. Zuckerberg called Apple's new rules ‘onerous’ and expressed doubt that any developer would adopt them.

The DMA aimed to foster competition by enabling companies to run their app stores and handle their payments, potentially avoiding Apple's commissions. However, Apple's adherence to the DMA introduced new fees, such as the ‘Core Technology Fee,’ applicable to developers adopting DMA rules, regardless of app distribution. Apple also offered the option for developers to stick to the existing commission structure, where Apple takes a 15 per cent to 30 per cent cut of in-app purchase revenues.

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If the DMA had been more restrictive, Meta might have used the law to launch its app store. However, Zuckerberg indicated that Meta is unlikely to take advantage of the alternative app stores provided by Apple due to the perceived difficulties and misalignment with the original intent of the EU regulation.

Zuckerberg's stance aligns with other tech companies, including Epic Games, Spotify, Mozilla, and Microsoft, who have criticized Apple's DMA compliance. Epic Games referred to Apple's rules as ‘malicious compliance’ with ‘junk fees,’ Spotify called them ‘extortion’ and a ‘total farce,’ and Microsoft deemed them a ‘step in the wrong direction.’ Match, another Apple critic, has yet to decide whether to opt into the new DMA rules as it continues to assess them.

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Published February 2nd, 2024 at 08:58 IST

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