Meta CEO Zuckerberg Opposes Apple's Proposed Changes in EU, Predicts Developer Resistance

Mark Zuckerberg Criticizes Apple's DMA Proposals, Forecasts Limited Developer Adoption Amidst Concerns Over Onerous Terms

NEWS  Apple  February 2, 2024  Reading time: 2 Minute(s)

Max (RS editor)

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In the wake of Apple's proposed changes to comply with the European Union's Digital Markets Act (DMA) antitrust legislation, Mark Zuckerberg, the CEO of Meta, has expressed skepticism and opposition. Zuckerberg's apprehensions were voiced during Meta's Q4 2023 fiscal results announcement, where he shared doubts about the feasibility of developers embracing Apple's new terms in the EU.

 MARK ZUCKERBERG, META CEO [IMAGE CREDITS: WIKIPEDIA] 

Apple's DMA proposals aim to offer developers in the EU alternative business models with reduced commission rates, a move intended to address antitrust concerns. However, Zuckerberg criticized the terms as "onerous", questioning their alignment with the spirit of EU regulations. He remarked that Meta itself is unlikely to adopt Apple's proposed terms due to their perceived impracticality.

Under the proposed changes, developers in the EU could opt for commission rates as low as 17%, or 10% for participants in the Small Business Program, marking a significant reduction from the standard 30% commission charged by Apple. However, a crucial caveat accompanies these reduced rates in the form of a Core Technology Fee (CTF) of €0.50 per annual installation after an app surpasses 1 million installations. Even for apps distributed outside Apple's App Store, the CTF would still apply.

Critics argue that the imposition of the CTF undermines the purported benefits of reduced commission rates.

 Popular apps and indie developers alike could find themselves burdened by substantial fees, potentially nullifying any savings from the reduced commissions. Tim Sweeney, CEO of Epic Games, denounced the changes as an "anti-competitive scheme rife with junk fees", echoing sentiments expressed by other industry players such as Microsoft, Spotify, and Mozilla.

While Apple prepares for the rollout of iOS 17.4 with the mandated changes before the DMA comes into effect on March 7, the EU has refrained from commenting directly on the proposals but has signaled readiness to take robust action if deemed necessary. The tech industry awaits further developments as stakeholders assess the implications of Apple's proposed changes amidst ongoing scrutiny over antitrust compliance.

Zuckerberg's reservations and the broader industry criticism underscore the complexity of balancing regulatory compliance with the interests of developers and tech companies. The outcome of this debate will not only shape the dynamics of app distribution in the EU but also set precedents for antitrust enforcement in the digital marketplace.

 COVER IMAGE: FREEPIK / REVIEW SPACE