From Fortune Magazine:

Apple has announced plans to dismantle competitive barriers around its iPhone franchise to comply with new European regulations. This includes giving users the option to use alternative app stores and allowing developers more avenues to avoid fees. Apple will also lower the fees it collects from developers in Europe.

The sweeping plan, effective in early March, will lower Apple’s fees and allow iPhone users in Europe to use other app stores and alternative payment systems. However, Apple is concerned that this may increase the risk of consumers being exposed to hackers and security problems.

The change comes in response to the upcoming Digital Markets Act (DMA) regulations, set to take effect on March 7. The revisions will lead to increased privacy and security threats, but will also decrease the fees Apple collects on in-app transactions in Europe. These in-app commissions are a significant revenue source for Apple.

In the U.S., Apple will continue to charge 15% to 30% on in-app transactions through its payment system, despite a recent court ruling allowing app developers to offer alternative payment options. This change in Europe is expected to prompt similar calls for decreased fees in other markets.

Spotify, an Apple competitor, has vowed to fight for changes outside Europe. It believes that consumers will benefit from increased freedom and calls on other governments to pass laws similar to the European Digital Markets Act. Additionally, Apple will make it easier for consumers to switch to different default options besides its own Safari browser to comply with the upcoming regulations.



Read more: Apple will open iPhone to other app stores and lower fees in Europe as it warns of ‘unavoidable increased privacy and security threats’