Report from The Verge
In Brief – Apple reacted to the public introduction of Hot Tub, an iOS pornography app that will be available to iPhone users in the EU through the alternative app store AltStore PAL, by criticizing the European Commission’s regulatory decisions. Although AltStore PAL described the porn app as the first ever “approved” by Apple, the iPhone developer derided the claim saying, “Contrary to the false statements made by the marketplace developer, we certainly do not approve of this app and would never offer it in our App Store. The truth is that we are required by the European Commission to allow it to be distributed by marketplace operators like AltStore and Epic who may not share our concerns for user safety.” The EU Digital Markets Act (DMA) prohibits the largest “gatekeeper” platforms, including Apple, from preferencing their own services or prohibiting competitors from operating on their core services unless they would harm the hardware or software. Both AltStore PAL and Hot Tub cleared that technical review. But their content violates longstanding Apple App Store rules and are available only due to EU mandates. Apple added, “This app and others like it will undermine consumer trust and confidence in our ecosystem that we have worked for more than a decade to make the best in the world.”
Context – There are 7 DMA gatekeepers that operate 24 “core platform services” that must comply with 18 regulatory mandates. Apple has four covered services, including the App Store. The DMA challenges Apple’s core user proposition more than the other gatekeepers. Rather than using technical or non-transparent practices to shape its platforms, Apple built an openly restrictive “walled garden” with a value proposition that the Apple platform was better at promoting privacy, security, and a consistent user experience, including blocking porn apps. And their devices have been very popular with users. Last June, the Commission determined that Apple’s changes to its App Store rules and fees were insufficient and a fine is expected, although EU tech mandates and fines have been criticized by US President Donald Trump and may be under review.