At the end of March, the EU agreed on a new law on digital markets (Digital Markets Act, DMA for short) with the aim of comprehensive regulation of the large Internet companies. While consumer advocates welcome the DMA and speak of a long overdue strengthening of competition with other positive effects, the Internet giants affected are naturally less enthusiastic.
Above all, Apple boss Tim Cook is now mobilizing against the DMA. So Cook warned this week before a forced opening of the software system on the iPhone. The head of the iPhone group is particularly interested in so-called sideloading, i.e. installing apps outside of Apple’s official app stores. In the past, Apple had always successfully defended itself against sideloading, but with the introduction of DMA it would be forced to allow the installation of apps and third-party app stores on the iPhone as well.
Sideloading as a risk?
Cook’s argument: While Apple is in favor of data protection regulation and has also welcomed the European General Data Protection Regulation (GDPR), “we are deeply concerned about regulations that would undermine data protection and security in the service of other goals”.
As an example of the negative effects of sideloading, Cook cited individual cases that have occurred in the past at Google’s competitor Android. At the beginning of the coronavirus pandemic, reports surfaced of people downloading what appeared to be legitimate coronavirus tracking apps only to infect their devices with ransomware. “These victims were not iPhone users, as the system directly targeted those who could install apps from sites that bypass app store protections.” Unlike iOS, sideloading is already allowed on Android.
Cook’s warnings are also likely to have an economic background. After all, the group earns very well with in-app purchases, because the competing app providers currently also have to use Apple’s in-app payment system.
There is concern in Cupertino that those earnings could be lower once the DMA goes into effect. This should happen in October, the decision is considered a formality. After a transitional period of six months, sanctions of up to ten percent of global annual sales will apply from 2023.
Source: Nachrichten
