The Digital Market Act attacks the monopoly of tech giants on their platforms. These businesses, often referred to as “gatekeepers,” control access and set the rules of the game in the digital economy.
The DMA is primarily aimed at online activities that are widely used and provided by major platforms. It defines ten “essential platform services”:
Gatekeepers are defined by the following criteria:
The following obligations will be imposed on Gatekeepers:
On the other hand, Gatekeepers will be prohibited from:
These rules must be implemented as of 6 March 2024. Android, which already allows the installation of applications via other sources (sideloading), should undergo fewer major changes. Additional details were provided in a statement issued on 17 January, which can be accessed via The Google blog.
On January 25th last, Apple for its part announced the major changes planned beginning in March that were not welcomed by the community with much enthusiasm. We summarize the situation for you in the rest of this BIL.
Apple introduces the possibility of having marketplaces alternative to the App Store. These marketplaces, which must be installed from their respective websites, will offer the possibility of installing other applications.
The main benefits of these alternative marketplaces include the ability to avoid App Store commissions (between 15 and 30% today), as well as increased control over user data and subscription management. This can provide developers and businesses with greater flexibility and autonomy.
In response to the DMA and these new obligations, Apple has made sure to make their implementation as complex as possible:
In conclusion, while alternative marketplaces offer new opportunities, they also present significant challenges. It is critical for developers and businesses to carefully assess these pros and cons to optimize their application delivery strategy.
Apple now allows apps to choose alternative payment providers for in-app purchases, offering more flexibility and potentially significant savings.
Old and New Rates
Under the old conditions, applications were subject to an Apple commission of 15% for a turnover of less than 1 million euros, and 30% beyond, without the possibility of using an alternative PSP. With the new terms, the fees differ depending on whether the application is on the App Store or an alternative marketplace.
App StoreMarket Place AlternativeCore Technology Fee (CTF) $0.5 per “first annual installation” starting at $1 million0.5 per “first annual installation” starting at 1 MillionMarket Place Commission 10% (if CA < 1M) 17% (si CA > 1M) X% (defined by the market place) X% (defined by the market place) PSP Commission 3% for Storekit, Y% for an Alternatify% PSP Commission
For more information, you can consult the calculator provided by Apple or This simulation concocted by us.
Implementation Complexity
For international applications, implementation can be complex as Apple's in-app purchase APIs remain mandatory outside of the EU.
Our customers can reduce Apple's commission costs on in-app purchases, especially when the revenue per user is high because it offsets the CTF.
We have the opportunity to support our customers in defining their payment strategy, taking into account the specificities of their business model and the new options available.
Apple is paving the way for the use of browser engines other than WebKit, both in classic browsers and in browsers integrated into applications (in-app).
Currently, Apple is strengthening its investments in Safari/WebKit, with notable changes such as the support of web push notifications. However, restrictions remain:
This openness to alternative browser engines suggests a gradual transition to web technologies on mobile, similar to what happened on desktop. Although this change is not imminent, it marks a step towards greater flexibility and technological diversity in the development of mobile applications.
Apple is expanding the possibilities of using the NFC chip on iOS, allowing a payment application other than Apple Pay to be set up as the default option. This openness could encourage the emergence of alternative wallets offered by players such as Visa, bank card groups, GAFAM, or even ambitious startups. Banks that have already developed payment applications on Android could now offer similar solutions on iOS.
However, this openness is subject to potential restrictions:
Banks may consider creating their own payment applications on iOS, similar to those available on Android, such as CIC Pay or Paylib. The objective would be to bypass the fees imposed by Apple on transactions while recovering user data related to their purchases.
This represents an opportunity for the development of new applications, whether in native iOS or in hybrid solutions.
Apple's openness to alternatives in terms of payment service providers, browser engines, and the use of the NFC chip represents a major turning point for developers and businesses. However, to benefit from these innovations, it is essential to accept Apple's new terms and conditions. This commitment, while offering potential benefits, including a reduction in fees for some applications and the expansion of payment and browsing options, is irreversible and applies to the entire business account, not to individual applications.
It is crucial to carefully consider these changes.. For applications that make in-app purchases and are confident that they will not exceed one million first installations per year, accepting these terms may seem advantageous at first glance, with a minor but immediate reduction in commissions (from 15% to 13%). However, the decision to accept these terms should not be taken lightly. The long-term implications on business strategy, user management, and regulatory compliance need to be carefully evaluated.
First annual installation*: The installations considered to be “First annual installation” are listed here https://developer.apple.com/help/app-store-connect/distributing-apps-in-the-european-union/first-annual-install-types/ . Concretely: you must count on 1 first annual installation/year/user.