The European Game Developer Federation (EGDF) has expressed its dissatisfaction with the recent changes introduced by Apple to iOS.
While complying with the Digital Markets Act (DMA) by opening its mobile ecosystem to third-party app stores, Apple has implemented a 17% commission fee on all transactions for companies utilizing these third-party stores. Additionally, there is a charge of €0.50 for each install per year after the first million.
According to the EGDF, the new fee-based structure poses challenges for app developers seeking to compete with Apple’s own services, such as the Apple App Store. It creates a disincentive for game developers to utilize third-party marketplaces or process in-game payments through alternative payment systems.
The federation notes that the €1 million credit line threshold for becoming a marketplace introduces an artificial barrier to market access for new third-party marketplaces.
While acknowledging the positive aspect of the DMA, which enables game makers and publishers to establish their own marketplace, the EGDF raises concerns about Apple’s implementation of the DMA’s rules.
Key concerns highlighted by the federation include the need for third-party payment systems to access the same iOS features as Apple’s payment system, the ability for game developers to use both Apple and third-party payment systems simultaneously, and the requirement of a €1 million letter of credit for potential commercial marketplace developers.
The EGDF also emphasizes the importance of Apple not utilizing security and privacy functions, such as App Tracking Transparency in iOS 17.4, to create anti-competitive data access barriers. Additionally, the federation questions the justification for the €0.50 install fee, expressing concerns about its potential impact on fair competition within the AppStore.
In conclusion, the EGDF urges Apple to provide clarity on whether game developers must choose between old and new business terms individually for each game within their portfolio. The federation emphasizes the need for a fair and transparent framework that supports competition and innovation in the mobile app development ecosystem.
