Apple Inc. (NASDAQ:AAPL) CEO Tim Cook underscored that its Alternative App Store proposal in response to the European Union’s Digital Markets Act (DMA) would compromise the iPhone maker’s privacy, security, and usability.
What Happened: Apple’s CEO, Tim Cook, confirmed on Friday that the company had made significant revisions to its European App Store operations, in a post-earnings conference call.
These changes, set to take effect in March, include the introduction of alternative billing opportunities and marketplaces, as well as the expansion of NFC capabilities for banking and wallet apps.
“If you think about what we’ve done over the years is, we’ve really majored on privacy, security, and usability. And we’ve tried our best to get as close to the past in terms of the things that are,” Cook said.
However, as a result of the DMA, Apple has had to allow iPhone and iPad users the ability to sideload apps, which means users will be able to download and install apps and games from third-party app stores instead of being restricted to Apple’s own store.
In addition to this, Apple has also allowed developers to offer alternative payment modes in exchange for a 3% reduction in commission – developers who choose to use a different payment provider will still have to pay Apple a 27% cut.
However, Cook says that these proposals will undermine Apple’s focus on privacy and security while reducing usability as well.
“We are going to fall short of providing the maximum amount that we could supply, because we need to comply with the regulation.”
Why It Matters: On the other end of the spectrum, Apple’s App Store proposal has united both its peers as well as rivals.
These concerns stem from the potential cost of Apple’s proposed “Core Technology Fee,” which could amount to millions of dollars in annual payments from developers who…