The European Commission (EC) found Apple in breach of the Digital Markets Act due to its anti-competitive App Store practices, notably its anti-steering policies that restrict alternative payment methods. In response, Apple is appealing a €500 million fine and has begun labeling some apps that offer third-party payment options, like Instacar, with warnings suggesting they are untrustworthy. These warnings link to pages criticizing alternative payment systems, although major processors like Stripe and PayPal are reliable. Critics argue this tactic is designed to undermine trust in non-App Store payment options, prompting further scrutiny from the EC.
Last month, the European Commission (EC) concluded that Apple violated the Digital Markets Act (DMA) due to its anti-competitive practices in the App Store. A significant concern for the EC was Apple’s anti-steering policies, which restricted users from accessing alternative payment options.
As Apple appeals the €500 million fine, users across the European Union have observed that Apple is now adding warning signs next to certain apps that provide third-party payment solutions outside the App Store.
One instance is Instacar, a Hungarian application that displays vehicle data history. This app does not utilize Apple’s App Store for in-app payments and now features a disclaimer bubble stating, “This app does not support the App Store’s private and secure payment system. It uses external purchases.” This message is accompanied by a red warning icon, which casts a shadow of untrustworthiness over the app.
The disclaimer links to a specific page where Apple outlines the shortcomings of alternative payment systems. Although some third-party payment processors may not meet the security standards of the App Store, many leading services like Stripe, PayPal, and Square have demonstrated reliability.
Ultimately, the new warning system appears to be Apple’s tactic to deliberately portray apps that do not use its payment system as insecure. It will be intriguing to see the EC’s response to this situation.
Via