How Apple’s proposed changes could crumble the freemium model
Apple announced changes to its app store and iOS operating system in Europe in compliance with the European Union’s Digital Markets Act (DMA).
The company will now allow developers to opt for the ‘new regime’ which lets users within the EU download apps and make purchases outside the Apple app store. It will also permit developers to distribute their apps via alternate stores, thereby also opting out of Apple’s in-app payment system.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitApple has also introduced a new fee for developers, called the ‘core technology fee’. Developers will now pay 0.50 euros for each first annual install over one million in the past 12 months.
These changes are significant because they open up the ‘walled garden’ that Apple has prided itself on, but they also come with a caveat that could effectively kill the ‘freemium’ model that most of these apps are based on.
But many are unhappy with the changes. Be it Meta CEO Mark Zuckerberg who called it “onerous”, or Epic Games founder Tim Sweeney who termed it “malicious”, Apple has found itself under fire. Even Thierry Breton, commissioner for internal markets at the EU, said that if Apple’s proposed solutions weren’t good enough, the commission won’t hesitate to take “strong action”.
“Very few developers see this as a realistic
