Australians may soon be able to download iPhone apps from outside Apple App Store under government proposal
Australians could soon be able to download apps outside the Apple App Store and avoid extra charges on purchases made on the iPhone under a federal government proposal, but the tech giant has warned EU-style competition rules for apps risks security and may harm competition.
Currently, Australian users cannot subscribe to Netflix or Spotify through their iOS apps, while Google charges a premium on YouTube subscriptions through the App Store and Amazon does not let Kindle users buy ebooks through the app.
This is due to Apple taking a cut of up to 30% on in-app purchases, which applies to the highest-earning apps. The companies cannot advise customers how to make the purchase elsewhere, under Apple rules.
In a paper released in November last year, the government outlined a proposal to 'designate' digital platforms like the Apple App Store.
Sign up for Guardian Australia's breaking news email
This would then compel those platforms to comply with obligations that target what the government deems to be anti-competitive conduct.
The paper specifically highlights the in-app payment scheme favoured by Apple as an example of the type of behaviour the competition regulator could target once a platform is designated, as well as allowing users to download apps from places outside the official App Store – known as sideloading.
In its response to the paper, Apple said the government should not use the EU's Digital Markets Act (DMA) as 'a blueprint' for the scheme.
'The DMA requires changes to Apple's ecosystem that bring increased privacy and security risks to users, opening the door for malware, fraud and scams; illicit and harmful content; and other threats,' the company said.
Apple argued the 30% rate is only charged to the highest-earning apps, with 90% of the US$1.3tn in sales and billings generated through iOS apps being paid without Apple taking a slice. It said most developers who pay are charged 15%.
The company has also warned against sideloading apps. In addition to the security risks Apple said would come with it not being able to vet the apps that users install, the company said in the submission that, in the EU, pornography apps and apps allowing copyright infringement can be installed.
Users have long been able to download apps onto MacBooks and other traditional computer devices this way. The Android platform also allows sideloading of apps and third-party purchases outside the Google Play store.
The company also claimed the DMA was the reason for Apple delaying the launch of its AI features.
Sign up to Breaking News Australia
Get the most important news as it breaks
after newsletter promotion
Telsyte managing director and principal analyst, Foad Fadaghi, said opening up Apple's platform might be useful for some users, but would not change how most people use their iPhone.
'There might be concern from users who look for heightened security and privacy from Apple devices, and most will choose the locked-down mode as default,' he said.
Australia is not an outlier – Apple is facing regulatory and legal pressure over its App Store dominance in Asia, Europe and the US. While the company has complied with the laws in those jurisdictions it has resisted pressure to make the App Store globally consistent. Apple previously changed its hardware globally to use USB-C connectors in order to comply with EU rules.
The government has yet to announce next steps in the process, and the submissions to the paper have yet to be published by the Treasury department.
A federal court judgment on Epic Games' case against Apple and Google over app store practices has yet to be handed down, nearly one year since the hearings ended.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
7 hours ago
- The Guardian
Australians can look forward to a bigger nest egg as super guarantee rises to 12%
Australian workers can look forward to a bigger nest egg, with an increase to the superannuation guarantee to add tens of thousands of dollars to the average super account. From 1 July, employers' minimum required contribution to employees' superannuation accounts will rise from 11.5% to 12%. It is the latest and last in a series of incremental increases from 9% over more than a decade since they were legislated by the Rudd-Gillard Labor government in 2012. With the latest bump, a 30-year-old earning $60,000 would have an extra $20,000 in super by retirement, according to the Association of Superannuation Funds of Australia. It will add about $300 each year to the superannuation of a worker on a $60,000 salary, or $500 for someone on a $100,000 salary. 'The system foundations are cemented for young, working people to have a comfortable retirement,' the ASFA chief executive, Mary Delahunty, said. 'It's a moment all Australians should be proud of.' Sign up for Guardian Australia's breaking news email The association said the cost of a comfortable retirement had increased 1.6% in the past year, while the cost of a modest retirement rose 1.7%. A 'comfortable' retirement includes top-level health insurance, a reasonable car and leisure activities. The cost of either outcome was increasing slower than Australia's current 2.4% headline inflation but retiree budgets remained under pressure from rising food, energy and health costs. Couples on average need $73,900 annually for a comfortable retirement, while most singles require $52,300 a year, ASFA says. For a modest retirement covering the basics, couples needed $48,200 each year, singles $33,400, or for renting couples, $64,250, and $46,660 each year for singles who rent. The figures underlined the importance of increasing Australia's housing stock, Delahunty said. 'They also illustrate how super can be the difference between hardship and stability later in life, especially for renters.' For some workers, the extra contribution would come from their existing pay package, according to CPA Australia's superannuation lead, Richard Webb. 'It's a good idea to check with your employer to see how they view the changes and what it means for you,' he said. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Workers on contracts with a total remuneration package could see a slight drop in their take-home pay, while those on award or enterprise agreements would likely receive the contribution on top of their current pay. When compulsory superannuation was introduced in 1992 – in part to reduce government spending on the age pension – only one in 10 Australian retirees listed super as a source of income. Nine in 10 people between 30 and 50 now have super. Government spending on the age pension was projected to fall from 2.3% of gross domestic product in 2020 to 2.0% by 2062-63, despite a doubling of the over-65 population and a trebling of over-85s over the same period. However, the super guarantee increase would not help those who missed out on paid work for extended periods, the Super Consumers Australia chief executive, Xavier O'Halloran, said. '(For) people who have caring responsibilities or who have been locked out of the unaffordable housing market … increasing SG further won't address those inequalities,' he said. O'Halloran said there was more that could be done to support people struggling in retirement, when a significant portion of their autumnal years' savings were made. 'Right now, there are no minimum standards for retirement products like there are for MySuper,' he said. 'There is also no performance testing of retirement products, so super funds can still sell poor products.'
NBC News
7 hours ago
- NBC News
Apple sued by shareholders for allegedly overstating AI progress
(Reuters) — Apple was sued on Friday by shareholders in a proposed securities fraud class action that accused it of downplaying how long it needed to integrate advanced artificial intelligence into its Siri voice assistant, hurting iPhone sales and its stock price. The complaint covers shareholders who suffered potentially hundreds of billions of dollars of losses in the year ending June 9, when Apple introduced several features and aesthetic improvements for its products but kept AI changes modest. Apple did not immediately respond to requests for comment. CEO Tim Cook, Chief Financial Officer Kevan Parekh and former CFO Luca Maestri are also defendants in the lawsuit filed in San Francisco federal court. Shareholders led by Eric Tucker said that at its June 2024 Worldwide Developers Conference, Apple led them to believe AI would be a key driver of iPhone 16 devices, when it launched Apple Intelligence to make Siri more powerful and user-friendly. But they said the Cupertino, California-based company lacked a functional prototype of AI-based Siri features, and could not reasonably believe the features would ever be ready for iPhone 16s. Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year's Worldwide Developers Conference on June 9 when Apple's assessment of its AI progress disappointed analysts. Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of market value.
Reuters
8 hours ago
- Reuters
Apple executives held internal talks about buying Perplexity, Bloomberg News reports
June 20 (Reuters) - Apple (AAPL.O), opens new tab executives have held internal talks about potentially bidding for artificial intelligence startup Perplexity, Bloomberg News reported on Friday, citing people with knowledge of the matter. The discussions are at an early stage and may not lead to an offer, the report said, adding that the tech behemoth's executives have not discussed a bid with Perplexity's management. Apple and Perplexity did not immediately respond to requests for comment.
