Apple Changes App Store, Safari, and iOS Features in EU to Comply With New Digital Law

Apple (AAPL) said Thursday it will be making changes to its App Store, Safari, and the iOS operating system on iPhones in the European Union (EU) to comply with a new law taking effect in March, the Digital Markets Act (DMA).

The European Commission designated Apple as a “gatekeeper” under the DMA, which regulates big tech companies to promote competition, consumer choice, and innovation. Among other things, the DMA requires that gatekeepers including Apple allow third parties to interoperate with their own systems in certain instances, such as the App Store and Apple Pay.

Apple said that the changes to iOS, Safari, and the App Store, which will make the iPhone maker’s systems compliant with the DMA, will be available to developers Thursday through a beta release and to users in March.

Apple and other gatekeepers are required to comply with the DMA’s provisions by March 6, 2024, or else could face fines of up to 10% of their annual worldwide turnover.

“The changes we’re announcing today comply with the Digital Markets Act’s requirements in the European Union,” said Apple Fellow Phil Schiller in a release, adding that “developers can now learn about the new tools and terms available for alternative app distribution and alternative payment processing, new capabilities for alternative browser engines and contactless payments, and more. Importantly, developers can choose to remain on the same business terms in place today if they prefer.”

Shares of Apple finished 0.2% lower at $194.17 per share on Thursday, though they were up more than 34% from a year earlier.