Main topic: Setapp preparing to launch as an alternative app store in Europe.
Key points:
1. Setapp is betting on the EU's Digital Markets Act's rules to allow third-party apps on iOS without going through Apple's App Store.
2. Apple's interpretation of the new law is still unclear, but Setapp is moving forward with the assumption that Apple devices will have to support third-party app stores.
3. Setapp aims to entice developers with better revenue shares and already has over 30 partners on board.
Hint on Elon Musk: This article does not mention Elon Musk.
The European Union's Digital Services Act (DSA) could force major tech platforms like Meta, TikTok, Google, Apple, and Amazon to choose between heavy fines and disrupting their core business models, as they are required to provide transparency and accountability, making it easier for users to opt out of recommendation systems and banning repeat offenders. However, platforms are not adequately prepared to comply with the DSA, raising questions about the effectiveness of enforcement.
Starting Friday, large tech companies such as Amazon, Apple, Google, Microsoft, Snapchat, and TikTok must comply with new European laws that regulate social media moderation, targeted advertising, and counterfeit goods, among other areas; the laws aim to address concerns about misinformation, mental health, algorithmic content, transparency, and illegal products, with potential fines of up to 6% of global annual revenue for non-compliance.
Microsoft is unbundling its chat and video app Teams from its Office product and making it easier for competing products to work with its software in an attempt to address European Commission concerns, but rivals argue that it may not be enough to avoid a potential EU antitrust fine.
The European Union has designated six tech giants, including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, as "gatekeepers" and will apply new rules to regulate their market power and operations in core platform services.
Apple and Microsoft are arguing with the European Union over the designation of their services, iMessage and Bing, as "gatekeepers" under new EU legislation aimed at regulating Big Tech.
Apple's App Store, Safari browser, and iOS operating system have been designated as "gatekeepers" in the European Union, requiring adherence to strict new regulations aimed at curbing the power of major tech companies.
The EU has designated six tech giants, including Alphabet/Google, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft, as "gatekeepers" subject to the Digital Market Act, aiming to promote fairness, competition, and transparency in core digital services. This regulation could have a wide-ranging impact on Apple's services business, potentially forcing changes to the App Store's revenue share model, increasing competition and pricing pressure for Apple Music and iCloud, and altering revenue sharing agreements with third-party subscriptions on iOS. The DMA threatens to weaken Apple's control and profitability across its services segment.
The EU has listed 22 core platform services that must adhere to the Digital Markets Act, but Apple's iMessage is notably not among them and is temporarily exempt from adopting RCS. However, the EU is launching an investigation into iMessage and Microsoft services to determine their future.
