
Competition in any industry is good for the consumers. Monopolies can cause markets to stagnate or product and service prices to increase with no alternative.
Apple has fallen foul of E.U. lawmakers and must now allow users of their products to access alternatives to the Apple Store which will have far-reaching effects.
New EU App Store Legislation
In order for the App Store, Safari, and iOS to comply with the European Union’s DMA (Digital Markets Act), a variety of changes will take place in terms of functionality and alternatives.
App Store
All Apple operating systems including iOS, macOS, iPadOS, tvOS, and watchOS will see changes for developers including disclosures to EU customers about the potential risks of using App Store alternatives for processing payments.
Some of the changes include new PSP (payment service provider) options within developers’ apps and options for consumers to make payments out of apps via external websites.
Information letting consumers know when they are using alternative payment methods will also be made available, with additional steps that offer EU users protection.
Product page labels will inform users when alternative payment processing is being implemented and disclosure sheets in the app will inform consumers when transactions are not with Apple.
Review processes will also be updated to ensure developers are communicating openly with consumers.
All types of markets will be affected by these changes, especially those dependent on payments, including the betting industry.
Casino expert Graziella Calleja explains that online casinos offer a variety of payment methods including cryptocurrencies, bank transfers, and traditional card payments. (Source: https://www.business2community.com/gambling/best-real-money-casino-apps)
Casinos that have apps available on the App Store that can be accessed by customers in the E.U. will have to update terms and conditions and implement the measures mentioned above.
Safari
While Apple product users already have the choice of installing third-party browsers, a new option will appear in iOS 17.4 and future updates for Safari where EU users will choose a default browser.
This screen will appear the first time users click into Safari and before they are able to browse online.
iOS
iOS will see the largest amount of changes for EU users in compliance with the DMA. Developers will be able to use new tools and APIs to offer their apps on alternative marketplaces. Updated APIs and frameworks will enable developers to manage updates and install apps for other developers on their dedicated marketplace. New frameworks will also enable the use of alternative browser engines for in-app browsing.
Interoperability request forms will be available for developers to submit requests for iOS software and hardware features.
New controls will be implemented to manage contactless payments from third-party apps or marketplaces to mitigate risk. Safeguards will be implemented from iOS 17.4 onwards, including iOS app notarization that performs a review to ensure integrity and customer safety.
App installation sheets will provide breakdowns of app functionality and essential information before downloading.
Marketplace developers will require authorization to ensure they are committed to meeting requirements set out for consumer safety and additional malware protections will be implemented to prevent apps from launching if malware is detected.
While these measures won’t completely eliminate risk, they will help Apple customers reduce the risk of installing apps that could contain malicious code.
How the New Legislation Came About
This ruling came about following a challenge from Spotify in 2020 alleging that Apple IAP was restricting competition. Epic Games launched a similar complaint in the U.S.
Implications for Betting Sites
Despite having some implications for how apps must behave in the EU, the DMA should not impact betting sites too much. Guidelines advise that developers must comply with applicable laws and will be responsible for the content provided.
Appropriate licensing from relevant regulators will still be required, meaning licensed online casinos are in a good position.
Conclusion
The changes being made to App Store legislation will only affect customers in EU countries, however, it is not out of the question that different regions will launch their own challenges, using this case as a precedent.
While greater competition and options for consumers are clearly a good thing, the loss of control from Apple could put users at risk. Guidelines should help to mitigate risk to some extent, but consumers will have to take more care when downloading and using apps in the future.