EGDF says it's disappointed in Apple's new EU policy
Among the federation's concerns is the possibility of unfair competition for content on the AppStore
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The European Game Developer Federation(EGDF) says that it's discouraged by Apple's changes to iOS.
As the DMA requires, the iOS firm is opening its mobile ecosystem to allow third-party app stores. However, it includes a 17% commission fee on all transactions for companies that use it, which also consists of a charge of €0.50 for each install per year after the first million.
The EGDF said in part, "The new install fee-based structure makes it difficult for any app developer to compete against Apple's own services like the Apple App Store. It creates a disincentive for game developers to start distributing their games through third-party marketplaces or process their in-game payments through third-party payment systems.
"Furthermore, the €1 million credit line threshold to become a marketplace creates an artificial market access barrier for new third-party marketplaces."
The federation added that it celebrates the fact that the DMA enables game makers and publishers to create their own marketplace. However, it noted that Apple's implementation of the DMA's rule has various concerns.
Some of the concerns the EGDF highlighted are listed below:
- Apple must allow third-party payment systems to access the same iOS features as Apple's own payment system
- Game developers must be able to use both Apple and third-party payment systems simultaneously
- Apple's requirement of a EUR 1 million letter of credit from an A-rated financial institution for anyone willing to become a commercial marketplace developer creates a significant market access barrier
- Apple must not use iOS17.4 security and privacy functions like App Tracking Transparency to create anti-competitive data access barriers
Additionally, the EGDF said that the install fee of €0.5 is hard to justify.
The federation said it could lead to an unfair competition for content on the AppStore.
Also, it added that the tech giant should be clear on whether game developers have to choose old or new business terms individually for each game within their portfolio.