Meta Skeptical of Apple's New EU App Store Policies; Citing Difficulty in Rival Development

During Meta's fourth-quarter earnings call, CEO Mark Zuckerberg dismissed the notion of Meta venturing into creating its own iPhone app store, citing the formidable challenges posed by Apple's recent policies. Although new regulations in the European Union theoretically permit the establishment of alternative iPhone app stores, significant developers like Meta are hesitant to embrace the opportunity.

On Thursday, CEO Mark Zuckerberg shared Meta's view on Apple's new policies during his fourth-quarter earnings call: "I don't think that the Apple thing is going to have any difference for us. Because I think that the way they have implemented it, I would be very surprised if any developer chose to go into the alternative app stores that they have. They've made it so onerous, and I think so at odds with the intent of what the EU regulation was, that I think it's just going to be very difficult for anyone, including ourselves, to really seriously entertain what they're doing there."

Under the EU's Digital Markets Act (DMA), Apple is compelled to open up the iPhone to alternative app stores. However, the devil lies in the details, as Apple introduces new fees that could significantly impact the business model of free apps, such as those offered by Meta if distributed outside the official App Store.

Zuckerberg's stance mirrors the grievances expressed by prominent App Store critics, including Spotify, Epic Games, and Microsoft. Epic CEO Tim Sweeney labelled Apple's approach to sideloading as "hot garbage," while Spotify CEO Daniel Ek deemed it a "new low." David Heinemeier Hansson, CTO of 37signals, criticized the setup as an "extortion regime."

European regulators have announced their intention to scrutinize Apple's implementation of sideloading post-March 7th when the DMA takes effect. The EU holds the authority to impose fines of up to 10 per cent of the annual revenue on companies violating the law. The scepticism and critiques surrounding Apple's policies continue reverberating within the tech industry.