"Apple Breaks Ground: iOS 17.4 Update Revolutionizes App Store and Browsing in the EU"

Apple Embraces Changes: iOS 17.4 Update in EU

In response to the EU's Digital Markets Act (DMA), Apple has unveiled significant alterations to iOS, the App Store, and browser functionalities. These groundbreaking adjustments are set to debut with the release of iOS 17.4 in March, exclusively in the EU.

1. Browser Freedom:

Currently, users can designate a default browser other than Safari, albeit constrained to Safari's WebKit rendering engine. However, the upcoming iOS 17.4 update will empower all browsers to employ their preferred rendering engines. Additionally, EU iPhone users will encounter a browser choice screen upon their first Safari launch, broadening browsing options.

2. Alternative App Stores Allowed:

In a landmark move, Apple will permit alternative app stores on iOS within the EU. Despite acknowledging potential user risks, Apple will enforce a baseline review for all apps, irrespective of their distribution channel. This scrutiny involves automated checks and human oversight, providing users with succinct app descriptions and functionalities pre-download.

3. NFC Accessibility:

NFC capabilities on iPhones will be accessible to alternative wallet and banking apps in the EU. This initiative enables tap-to-pay functionality and facilitates setting alternative apps as the default for mobile payments.

4. Payment Innovations:

The App Store will introduce new payment service provider options within developers' apps and facilitate transaction processing via external websites. Users will receive notifications regarding alternative payment processing and transitions away from Apple's platform, ensuring transparency.

5. Revised Commission Structure:

For EU iOS apps, a revised commission structure will be implemented. Most developers, including subscriptions beyond the first year, will pay a reduced 10% commission. Digital goods and services transactions will incur a 17% commission, with a 3% processing fee for apps retaining App Store payment processing. Additionally, a Core Technology Fee of €0.50 per first annual install per year over a 1 million threshold will be enforced for apps distributed from the App Store or alternative marketplaces.

Apple asserts that 99% of developers will experience reduced or unchanged fees, with less than 1% subject to the Core Technology Fee. Furthermore, developers on iPadOS, macOS, watchOS, and tvOS utilizing third-party payment processing or external website links will receive a 3% commission discount in the EU.

These transformative measures underscore Apple's commitment to compliance with the EU's regulatory landscape, while also fostering innovation and user empowerment within the iOS ecosystem. More detailed information will be shared with consumers as these changes take effect in March.