When the European Union introduced the Digital Markets Act, it designated platforms as gatekeepers, meant to open things up to prevent monopoly abuses. As a result, Apple has radically changed the iPhone ecosystem for EU users, and now, it has just been confirmed, similar changes are coming for iPad users.
Apple iPad: soon to be radically changed in the EU.
My usual reminder: although it will only affect users in the EU, other governments will be watching closely to see if they want to implement similar legal changes in their countries.
May 5 update below. This post was first published on May 2, 2024.
In a developer news update On Thursday, May 2, Apple confirmed that the changes it (reluctantly) introduced to the iPhone will come to the iPad this fall—the EU has allowed six months to comply, and the drop fits that timeline.
Apple said: “This week, the European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act. Apple will bring our recent iOS changes for European Union (EU) apps to iPadOS later this fall as needed. Developers can choose to adopt the EU Alternative Business Terms for Apps that will include these additional features and options in iPadOS, or stick with Apple’s existing terms.”
The changes listed are comprehensive, allowing for alternative app stores that allow users to download apps from them rather than just the Apple App Store. It also allows users to choose a different browser to use on the device, and the browser doesn’t have to be WebKit-based, as browsers are on the iPhone in the US, UK, and elsewhere.
Users can also choose their own favorite default search engine, which has already changed the landscape in the EU, it seems.
In addition, contactless payments can be made in more ways than just relying on Apple Wallet and Apple Pay. As says Apple“This includes APIs that allow developers to use NFC technology in their banking and wallet applications across the European Economic Area.”
In these alternative markets, app developers have to pay a basic technology fee for downloads during the first million installs, but Apple has now said that if the same app is installed on iPhone and iPad, that only counts as one install, helping maintaining this one million threshold.
While many developers will stick to the App Store alone, this move to embrace the iPad could be a game changer.
May 5 update. Confirming that the iPad will fall under the same rules as the iPhone in Europe was just part of the story Apple has been telling in recent days. He also announced an additional change to the base technology fee in addition to the one mentioned above.
As you may have noticed, the CTF is one of the more controversial elements Apple has introduced, done to reflect the value Apple has invested in alternative business terms to keep users safe. After the first million installs, the developer pays $0.54 (€0.5) for each annual install, so the news that the same app downloaded on iPhone and iPad counts as one in that total is welcome.
Additionally, Apple said a CTF is not required if the developer has no revenue, such as a free app without ads. Apple said,” This includes creating a free, non-monetized application that is not associated with revenue of any kind (physical, digital, advertising, or otherwise). This condition is intended to give students, hobbyists, and other non-commercial developers the opportunity to create a popular app without paying CTF.”
And small developers, those with less than €10 million in global annual revenue, “get a free 3-year ramp to the CTF to help them build innovative apps and rapidly grow their business.”