Challenges and Strategies for Apple under the EU Digital Market Act

In the wave of digital economy, technology giants have had a profound impact on the global economy with their huge market size and strong technological strength. However, this influence has also attracted the attention of regulatory agencies, especially the recently effective Digital Markets Act (DMA) in the European Union, which poses new challenges for technology giants. Among them, Apple, as one of the technology giants recognized as the "gatekeeper", has demonstrated its unique response strategy in the face of DMA regulation.

The implementation of DMA undoubtedly brings enormous pressure to Apple. According to an investigation by the European Union, Apple has failed to comply with the DMA's requirement to allow developers to guide users outside the App Store, and has also failed to comply with its obligation not to charge additional fees. In addition, Apple's "core technology usage fees" have also raised regulatory questions. The emergence of this cost undoubtedly increases the burden on developers and has also had a certain impact on Apple's image in the EU market.

Faced with these challenges, Apple has adopted a series of response strategies. Firstly, in response to the requirement in DMA to allow third-party app stores to download apps, Apple announced that app sideloading is allowed in the EU market. This measure means that Apple is no longer able to charge up to 30% of its app store commission, which undoubtedly has a certain impact on its profit model. To make up for this loss, Apple has reduced the commission rate for developers who continue to use the App Store, and further reduced the commission rate for subscriptions of more than a year or small businesses.

However, this is not the entire response strategy of Apple. For developers who try to bypass the App Store, although Apple cannot charge a commission, it compensates for the loss through a new form of fee called "core technology usage fee". The emergence of this expense undoubtedly increases the cost burden on developers and also makes Apple's competitive environment in the EU market more complex.

However, it is worth noting that despite Apple's adoption of these coping strategies, it has not completely avoided being accused by the European Union. According to insiders, the European Union may make preliminary accusations against Apple's "core technology usage fees" in the near future. This undoubtedly casts a shadow over Apple's future development in the EU market.

So, how should Apple respond to DMA regulation and EU accusations? Firstly, Apple needs to take DMA requirements seriously and actively fulfill its obligations as a gatekeeper. This includes discounts that allow developers to guide users outside of the App Store without charging additional fees. Only in this way can we avoid further backlash and accusations from regulatory agencies.

Secondly, Apple needs to adjust its profit model to adapt to the changes brought about by DMA. Apple can no longer rely on high app store commissions to maintain its profitability while allowing third-party app stores to download apps. Therefore, Apple needs to find new profit points, such as increasing revenue by providing value-added services, strengthening advertising promotion, and other means.

In addition, Apple needs to strengthen cooperation and communication with developers. Under the supervision of DMA, the attitude of developers towards Apple may change. Therefore, Apple needs to actively establish good cooperative relationships with developers to jointly address regulatory challenges. At the same time, Apple also needs to strengthen communication with developers, understand their needs and difficulties, in order to better adjust its strategies and policies.

Finally, Apple also needs to pay attention to the review trend of global antitrust agencies on the head Internet platforms. As regulation of large technology companies continues to strengthen globally, Apple needs to constantly monitor these changes in order to adjust its strategy and policies in a timely manner. At the same time, Apple also needs to strengthen cooperation and coordination with other technology companies to jointly address global regulatory challenges.

In summary, facing the regulation and challenges of the EU Digital Market Act, Apple needs to adopt active and effective response strategies. Only by conscientiously fulfilling obligations, adjusting profit models, strengthening cooperation and communication with developers, and paying attention to global regulatory trends, can we ensure its leading position in the development of the digital economy era. At the same time, this will also provide useful reference and inspiration for other technology companies to jointly promote the healthy development of the digital economy.