Joe_Dragon shares a report: Since Apple announced plans for the 0.50 euro Core Technology Fee that apps distributed using the new EU App Store business terms must pay, there have been ongoing concerns about what that fee might mean for a developer that suddenly has a free app go viral. Apple's VP of regulatory law Kyle Andeers today met with developers during a workshop on Apple's Digital Markets Act compliance. iOS developer Riley Testut, best known for Game Boy Advance emulator GBA4iOS, asked what Apple would do if a young developer unwittingly racked up millions in fees.

Testut explained that when he was younger, that exact situation happened to him. Back in 2014 as an 18-year-old high school student, he released GBA4iOS outside of the App Store using an enterprise certificate. The app was unexpectedly downloaded more than 10 million times, and under Apple's new rules with Core Technology Fee, Testut said that would have cost $5 million euros, bankrupting his family. He asked whether Apple would actually collect that fee in a similar situation, charging the high price even though it could financially ruin a family. In response, Andeers said that Apple is working on figuring out a solution, but has not done so yet. He said Apple does not want to stifle innovation and wants to figure out how to keep young app makers and their parents from feeling scared to release an app.

Apple is in talks to build Google's Gemini AI engine into the iPhone, Bloomberg News reported Monday, citing people familiar with the situation, setting the stage for a blockbuster agreement that would shake up the AI industry. From the report: The two companies are in active negotiations to let Apple license Gemini, Google's set of generative AI models, to power some new features coming to the iPhone software this year, said the people, who asked not to be identified because the deliberations are private. Apple also recently held discussions with OpenAI and has considered using its model, according to the people.

New emails from before the launch of the Epic Games Store in 2018 show just how angry Epic CEO Tim Sweeney was with the "assholes" at companies like Valve and Apple for squeezing "the little guy" with what he saw as inflated fees. "The emails, which came out this week as part of Wolfire's price-fixing case against Valve (as noticed by the GameDiscoverCo newsletter), confront Valve managers directly for platform fees Sweeney says are 'no longer justifiable,'" writes Ars Technica's Kyle Orland. "They also offer a behind-the-scenes look at the fury Sweeney and Epic would unleash against Apple in court proceedings starting years later. From the report: The first mostly unredacted email chain from the court documents, from August 2017 (PDF), starts with Valve co-founder Gabe Newell asking Sweeney if there is "anything we [are] doing to annoy you?" That query was likely prompted by Sweeney's public tweets at the time questioning "why Steam is still taking 30% of gross [when] MasterCard and Visa charge 2-5% per transaction, and CDN bandwidth is around $0.002/GB." Later in the same thread, he laments that "the internet was supposed to obsolete the rent-seeking software distribution middlemen, but here's Facebook, Google, Apple, Valve, etc." Expanding on these public thoughts in a private response to Newell, Sweeney allows that there was "a good case" for Steam's 30 percent platform fee "in the early days." But he also argues that the fee is too high now that Steam's sheer scale has driven down operating costs and made it harder for individual games to get as much marketing or user acquisition value from simply being available on the storefront.

Sweeney goes on to spitball some numbers showing how Valve's fees are contributing to the squeeze all but the biggest PC game developers were feeling on their revenues: "If you subtract out the top 25 games on Steam, I bet Valve made more profit from most of the next 1,000 than the developer themselves made. These guys are our engine customers and we talk to them all the time. Valve takes 30% for distribution; they have to spend 30% on Facebook/Google/Twitter [user acquisition] or traditional marketing, 10% on server, 5% on engine. So, the system takes 75% and that leaves 25% for actually creating the game, worse than the retail distribution economics of the 1990's." Based on experience with Fortnite and Paragon, Sweeney estimates that the true cost of distribution for PC games that sell for $25 or more in Western markets "is under 7% of gross." That's only slightly lower than the 12 percent take Epic would establish for its own Epic Games Store the next year.

The second email chain (PDF) revealed in the lawsuit started in November 2018, with Sweeney offering Valve a heads-up on the impending launch of the Epic Games Store that would come just weeks later. While that move was focused on PC and Mac games, Sweeney quickly pivots to a discussion of Apple's total control over iOS, the subject at the time of a lawsuit whose technicalities were being considered by the Supreme Court. Years before Epic would bring its own case against Apple, Sweeney was somewhat prescient, noting that "Apple also has the resources to litigate and delay any change [to its total App Store control] for years... What we need right now is enough developer, press, and platform momentum to steer Apple towards fully opening up iOS sooner rather than later." To that end, Sweeney attempted to convince Valve that lowering its own platform fees would hurt Apple's position and thereby contribute to the greater good: "A timely move by Valve to improve Steam economics for all developers would make a great difference in all of this, clearly demonstrating that store competition leads to better rates for all developers. Epic would gladly speak in support of such a move anytime!"

In a follow-up email on December 3, just days before the Epic Games Store launch, Sweeney took Valve to task more directly for its policy of offering lower platform fees for the largest developers on Steam. He offered some harsh words for Valve while once again begging the company to serve as a positive example in the developing case against Apple: "Right now, you assholes are telling the world that the strong and powerful get special terms, while 30% is for the little people. We're all in for a prolonged battle if Apple tries to keep their monopoly and 30% by cutting backroom deals with big publishers to keep them quiet. Why not give ALL developers a better deal? What better way is there to convince Apple quickly that their model is now totally untenable?" After being forwarded the message by Valve's Erik Johnson, Valve COO Scott Lynch simply offered up a sardonic "You mad bro?"

Google announced a major change to its Safe Browsing feature in Chrome today that will make the service work in real time by checking against a server-side list -- all without sharing your browsing habits with Google. From a report: Previously, Chrome downloaded a list of known sites that harbor malware, unwanted software and phishing scams once or twice per hour. Now, Chrome will move to a system that will send the URLs you are visiting to its servers and check against a rapidly updated list there. The advantage of this is that it doesn't take up to an hour to get an updated list because, as Google notes, the average malicious site doesn't exist for more than 10 minutes.

The company claims that this new server-side system can catch up to 25 percent more phishing attacks than using local lists. These local lists have also grown in size, putting more of a strain on low-end machines and low-bandwidth connections. Google is rolling out this new system to desktop and iOS users now, with Android support coming later this month.

Apple is planning to make further changes in EU countries to allow some developers to distribute their iOS apps directly from a website. From a report: The new web distribution feature will be available with a software update "later this spring," according to Apple, providing developers with a key new way to distribute iOS apps in EU markets without the need for a separate app store -- as long as they're willing to adhere to Apple's strict rules.

While Apple is opening up iOS to more third-party apps here, these are still some key security protections around how apps are distributed via websites -- namely, you'll still have to work within the strict Apple app development ecosystem.

According to Bloomberg's Mark Gurman, AirPods Pro will gain a new "hearing aid mode" with the release of iOS 18 later this year. MacRumors reports: Writing in the subscriber edition of his regular Power On newsletter, Gurman claims that the "big news" for AirPods Pro in the near term will be support for a hearing aid-style function when iOS 18 drops in the fall. To be clear, this isn't the first time we have heard a potential hearing aid feature for AirPods Pro. The first rumor appeared in a 2021 Wall Street Journal report, but it was previously framed as a feature that would be exclusive to a next-generation model of AirPods Pro. However, Apple in September 2022 released the second-generation AirPods Pro, while the company more recently released a refreshed model with a USB-C port.

AirPods Pro already offer a Conversation Boost feature, which boosts the volume and clarity of people directly in front of the wearer, but Apple has not advertised the earbuds as a hearing aid device, because this would require FDA regulatory approval. As per the FDA, a hearing aid is defined as "any wearable device designed for, offered for the purpose of, or represented as aiding persons with or compensating for, impaired hearing." This definition encompasses both air-conduction and bone-conduction devices in a variety of styles (for example, behind-the-ear, in-the-canal, or body worn). [...] It is not yet clear whether Apple will need FDA clearance in order to make explicit or implicit claims about the rumored "hearing aid mode," which may not even adopt this exact name. If, for example, Apple subsequently suggests that AirPods Pro are for users with certain types or severity of hearing loss/impaired hearing, or for use as an alternative to a hearing aid, then they will require FDA regulatory approval to be marketed as such.

Epic Games, in a blog post: Apple has told us and committed to the European Commission that they will reinstate our developer account. This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable. We are moving forward as planned to launch the Epic Games Store and bring Fortnite back to iOS in Europe. Epic CEO Tim Sweeney adds: The DMA went through its first major challenge with Apple banning Epic Games Sweden from competing with the App Store, and the DMA just had its first major victory. Following a swift inquiry by the European Commission, Apple notified the Commission and Epic that it would relent and restore our access to bring back Fortnite and launch Epic Games Store in Europe under the DMA law.

In an updated support page, Apple says it won't let your iPhone update software installed by third-party app stores if you leave the European Union for more than 30 days. The Verge reports: Shortly after the EU's Digital Markets Act (DMA) went into effect on Wednesday, users noticed an Apple support page stating users would "lose access to some features" when leaving the EU "for short-term travel." But now, Apple has made this policy more specific by carving out a 30-day grace period, which could be inconvenient for frequent travelers. This doesn't change your ability to use alternative app marketplaces, however, as Apple says you can still use third-party stores to manage apps you've already installed. Further reading: Apple is Working To Make It Easier To Switch From iPhone To Android Because of the EU

The European Union has confirmed it's looking into Apple's decision to close Epic Games' developer account -- citing three separate regulations that may apply. From a report: Yesterday the Fortnite maker revealed Apple had terminated the account, apparently reversing a decision to approve the developer account last month. Epic had planned to launch its own app store, the Epic Games Stores, on iOS in Europe, as well as Fortnight on Apple's platform. And it accused Apple of breaching the bloc's Digital Markets Act (DMA) by killing its developer account.

Responding to the development, a European Commission spokesperson told TechCrunch it has "requested further explanations on this from Apple under the DMA." The pan-EU regulation applies on Apple from midnight Brussels' time today. The spokesperson also said the EU is evaluating whether Apple's actions raise compliance "doubts" with regard to two other regulations -- the Digital Services Act (DSA) and the platform-to-business regulation (P2B) -- given what they described as "the links between the developer program membership and the App Store as designated VLOP" (very large online platform).

Apple is preparing to allow EU-based iPhone users to uninstall its first-party Safari browser by the end of 2024 and is working on a more "user-friendly" way of transferring data "from an iPhone to a non-Apple phone" by fall 2025. From a report: That's according to a new compliance document published by the company, which outlines all the ways it's complying with the European Union's new Digital Markets Act that comes into force this week.

Other user-facing initiatives detailed in Apple's document include a "browser switching solution" to transfer data between browsers on the same device, which it plans to make available by late 2024 or early 2025. It'll also be possible to change the default navigation app on iOS by March 2025 in the EU. The document doesn't explicitly state whether any of these features will be available globally or whether they'll be exclusive to users in the EU. But many of the company's previously announced plans to comply with the DMA -- including the ability to run browser engines other than WebKit and install third-party app stores -- are only available in the bloc.

Epic Games, in a blog post: We recently announced that Apple approved our Epic Games Sweden AB developer account. We intended to use that account to bring the Epic Games Store and Fortnite to iOS devices in Europe thanks to the Digital Markets Act (DMA). To our surprise, Apple has terminated that account and now we cannot develop the Epic Games Store for iOS. This is a serious violation of the DMA and shows Apple has no intention of allowing true competition on iOS devices.

The DMA requires Apple to allow third-party app stores, like the Epic Games Store. Article 6(4) of the DMA says: "The gatekeeper shall allow and technically enable the installation and effective use of third-party software applications or software application stores using, or interoperating with, its operating system and allow those software applications or software application stores to be accessed by means other than the relevant core platform services of that gatekeeper."

In terminating Epic's developer account, Apple is taking out one of the largest potential competitors to the Apple App Store. They are undermining our ability to be a viable competitor and they are showing other developers what happens when you try to compete with Apple or are critical of their unfair practices. If Apple maintains its power to kick a third party marketplace off iOS at its sole discretion, no reasonable developer would be willing to utilize a third party app store, because they could be permanently separated from their audience at any time. Apple said one of the reasons it terminated Epic's developer account only a few weeks after approving it was because the Fortnite-maker publicly criticized its proposed DMA compliance plan, Epic said.

Alternative iOS app stores won't work (for long) outside of the EU. From a report: With iOS 17.4, iPhone users in the EU can now access third-party app marketplaces -- pending availability which is expected any day -- but extended overseas travel could change that, according to Apple.

Jess Weatherbed reports via The Verge: Apple's iOS 17.4 update is now available, introducing new emoji and a cryptographic security protocol for iMessage, alongside some major changes to the App Store and contactless payments for the iPhone platform in Europe. Apple is making several of these changes to comply with the EU's Digital Markets Act (DMA), a law that aims to make the digital economy fairer by removing unfair advantages that tech giants hold over businesses and end users. iOS 17.4 will allow third-party developers to offer alternative app marketplaces and app downloads to EU users from outside the iOS App Store. Developers wanting to take advantage of this will be required to go through Apple's approval process and pay Apple a "Core Technology Fee" that charges 50 euro cents per install once an app reaches 1 million downloads annually. iPhone owners in the EU will see different update notes that specifically mention new options available for app stores, web browsers, and payment options.

The approval process may take some time, but we know that at least one enterprise-focused app marketplace from Mobivention will be available on March 7th. Epic is also working on releasing the Epic Game Store on iOS in 2024, and software company MacPaw is planning to officially launch its Setapp store in April. iOS 17.4 allows people in the EU to download alternative browser engines that aren't based on Apple's WebKit, such as Chrome and Firefox, with a new choice screen in iOS Safari that will prompt users to select a default browser when opened for the first time. While no browser alternatives have been officially announced, both Google and Mozilla are currently experimenting with new iOS browsers that could eventually be released to the public.

Apple is also introducing new APIs that allow third-party developers to utilize the iPhone's NFC payment chip for contactless payment services besides Apple Pay and Apple Wallet in the European Economic Area. No alternative contactless providers have been confirmed yet, but users will find a list of apps that have requested the feature under Settings > Privacy & Security > Contactless & NFC. While Apple previously revealed it was planning to drop support for progressive web apps (PWAs) in the EU to avoid building "an entirely new integration architecture" around DMA compliance, the company now says it will "continue to offer the existing Home Screen web apps capability" for EU users. However, these homescreen apps will still run using WebKit technology, with no option to be powered by third-party browser engines.

An anonymous reader quotes a report from MacRumors: Spotify, Epic Games, Deezer, Paddle, and several other developers and EU associations today sent a joint letter to the European Commission to complain about Apple's "proposed scheme for compliance" with the Digital Markets Act (DMA). The 34 companies and associations do not believe Apple's plans "meet the law's requirements." Apple's changes "disregard both the spirit and letter of the law" and if left unchanged, will "make a mockery of the DMA," according to the letter. Several specific components of Apple's plan are highlighted, including the Core Technology Fee, the Notarization process, and the terms that developers must accept:

- Apple's requirement to stay with the current App Store terms or opt in to new terms provides developers with "an unworkable choice" that adds complexity and confusion. The letter suggests that neither option is DMA compliant and would "consolidate Apple's stronghold over digital markets."
- The Core Technology Fee and transaction fees will hamper competition and will prevent developers from agreeing to the "unjust terms."
- Apple is using "unfounded privacy and security concerns" to limit user choice. The "scare screens" that Apple plans to show users will "mislead and degrade the user experience."
- Apple is not allowing sideloading, and it is making the installation and use of new app stores "difficult, risky and financially unattractive for developers."

The companies and associations are urging the European Union to take "swift, timely and decisive action against Apple." The way the European Commission responds to Apple's proposal "will serve as a litmus test of the DMA and whether it can deliver for Europe's citizens and economy." Further reading: Apple Backtracks on Removing EU Home Screen Web Apps in iOS 17.4

Apple is reversing its previous decision to remove support for Home Screen web apps in iOS 17.4 for EU users. Apple's statement: Previously, Apple announced plans to remove the Home Screen web apps capability in the EU as part of our efforts to comply with the DMA. The need to remove the capability was informed by the complex security and privacy concerns associated with web apps to support alternative browser engines that would require building a new integration architecture that does not currently exist in iOS.

We have received requests to continue to offer support for Home Screen web apps in iOS, therefore we will continue to offer the existing Home Screen web apps capability in the EU. This support means Home Screen web apps continue to be built directly on WebKit and its security architecture, and align with the security and privacy model for native apps on iOS.

Developers and users who may have been impacted by the removal of Home Screen web apps in the beta release of iOS in the EU can expect the return of the existing functionality for Home Screen web apps with the availability of iOS 17.4 in early March.

Apple could soon face an investigation over its decision to discontinue iPhone web apps in the European Union, according to a report from the Financial Times. The Verge: The European Commission has reportedly sent Apple and app developers requests for more information to assist in its evaluation. "We are indeed looking at the compliance packages of all gatekeepers, including Apple," the European Commission said in a statement to the Financial Times. "In that context, we're in particular looking into the issue of progressive web apps, and can confirm sending the requests for information to Apple and to app developers, who can provide useful information for our assessment."

Sarah Perez reports via TechCrunch: The CEO of meditation app Insight Timer, Christopher Plowman, is frustrated. He doesn't think the teachers who leverage his app's marketplace to reach their students should have to share 30% of their income with Apple -- its commission on in-app purchases -- and for the past 12 months, Apple had also agreed. After Apple loosened its rules around in-app donations in 2022, Insight Timer took advantage of the option to adjust a digital donations feature that allowed Insight Timers' teachers to collect "tips" from their user profiles and during live events. Apple reviewed the app and approved its release on the App Store. Now the tech giant has changed its mind -- it wants to collect a commission from this content, and Insight Timer had no choice but to comply or have its iOS business shut down, Plowman says. [...]

In section 3.2.1 of Apple's App Review guidelines, the company explains that apps can route around Apple's in-app purchase if the app enables individual users to "give a monetary gift to another individual" and "100% of the funds" go to the receiver of the gift. Insight Timer capitalized on this option to allow its users to tip meditation teachers, healers, musicians, and others who use its app to teach classes on meditation, managing stress, finding happiness or spiritual enlightenment, and more. Insight Timer implemented the feature using Stripe as the payment provider on the back end, as the rule permits. Users can opt to donate funds to the teacher, but they don't have to. Insight Timer's main business is selling premium subscriptions to its app, which offer additional features, like offline listening, journaling, and unlimited access to its courses. Fifty percent of this revenue is shared with the teachers, so they don't have to rely on donations to fund their work. During the time the commission-free donations feature was live, Insight Timer's users donated roughly $100,000 per month to the app's teachers, Plowman says.

Apple appeared to have blessed this use case, as the tech giant went on to approve 47 more updates to Insight Timer's app over the course of a 12-month period. When a question arose, Insight Timer explained that these were donations -- it doesn't take a cut of that revenue -- and Apple would approve the app. Late last year, those approvals stopped. An app reviewer told Insight Timer that these donations were no longer considered monetary gifts -- they were now "digital content." That meant they were also now subject to Apple's commissions. This decision doesn't hurt Insight Timer's bottom line, as the app's main business is subscriptions. Instead, it hurts the community of teachers who generate additional funds via users' donations. Now, with Apple demanding 30% of that revenue, the teachers are getting a 30% pay cut overnight, so to speak.

Plowman says he went back and forth with Apple over this feature, trying to understand why the donations option that Apple had previously allowed -- 47 times! -- was now subject to commission. Apple compromised and said it would allow the donations' link on teachers' profiles to be subject to its commission-free rules, but all other donations -- from live events, from meditations themselves -- had to be commissioned. It wouldn't allow those links to point to the donation link on the teachers' profiles, either. "And I was like, well, what's the point of building an ice cream stand across the road if you won't let the customers cross the road to buy the ice cream?" Plowman argued. In the end, the two parties didn't reach any sort of resolution. Plowman was given until February to comply with Apple's decision, or his business would be shut out of the App Store.

According to Bloomberg (paywalled), Apple plans to release a generative AI tool for iOS app developers as early as this year. Insider reports: The tech giant is working on a tool that will use artificial intelligence to write code as part of its plans to expand the capabilities of Xcode, the company's main programming software. The revamped system will compete withÂMicrosoft's GitHub Copilot, which sources say operates similarly. Apple is also working on an AI tool that will generate code to test apps, which could provide potential time savings for a process that's known to be tedious. Currently, Apple is urging some engineers to test these new AI features to ensure they work before releasing them externally to developers. [...]

The tech giant, Bloomberg has learned, has plans to integrate AI features into its next software updates for its iPhone and iPad known internally as Crystal. Glow, another internal AI project, is slated to be added to MacOS. The company is also building features that will generate Apple Music playlists and slideshows, according to the outlet. An AI-powered search feature titled Spotlight, currently limited to answering questions around launching apps, is in the works as well, Bloomberg reported.

An anonymous reader quotes a report from BleepingComputer: A new iOS and Android trojan named 'GoldPickaxe' employs a social engineering scheme to trick victims into scanning their faces and ID documents, which are believed to be used to generate deepfakes for unauthorized banking access. The new malware, spotted by Group-IB, is part of a malware suite developed by the Chinese threat group known as 'GoldFactory,' which is responsible for other malware strains such as 'GoldDigger', 'GoldDiggerPlus,' and 'GoldKefu.' Group-IB says its analysts observed attacks primarily targeting the Asia-Pacific region, mainly Thailand and Vietnam. However, the techniques employed could be effective globally, and there's a danger of them getting adopted by other malware strains. [...]

For iOS (iPhone) users, the threat actors initially directed targets to a TestFlight URL to install the malicious app, allowing them to bypass the normal security review process. When Apple remove the TestFlight app, the attackers switched to luring targets into downloading a malicious Mobile Device Management (MDM) profile that allows the threat actors to take control over devices. Once the trojan has been installed onto a mobile device in the form of a fake government app, it operates semi-autonomously, manipulating functions in the background, capturing the victim's face, intercepting incoming SMS, requesting ID documents, and proxying network traffic through the infected device using 'MicroSocks.'

Group-IB says the Android version of the trojan performs more malicious activities than in iOS due to Apple's higher security restrictions. Also, on Android, the trojan uses over 20 different bogus apps as cover. For example, GoldPickaxe can also run commands on Android to access SMS, navigate the filesystem, perform clicks on the screen, upload the 100 most recent photos from the victim's album, download and install additional packages, and serve fake notifications. The use of the victims' faces for bank fraud is an assumption by Group-IB, also corroborated by the Thai police, based on the fact that many financial institutes added biometric checks last year for transactions above a certain amount.

An anonymous reader quotes a report from The Verge: Epic is one step closer to opening its iOS games store in the European Union. As part of its 2023 year in review, Epic Games announced Apple has reinstated its developer account, which means it will finally be able to let users download Fortnite on iPhones again. Epic first announced plans to bring its game store and Fortnite to iOS in January, but it wasn't clear whether Apple would grant it a developer account.

In 2020, Apple pulled Epic's developer account after the company began using its own in-app payment option in the iOS version of Fortnite, sparking a lengthy legal battle over whether Apple's behavior was anticompetitive. But even after the trial ended, and neither company emerged a clear winner, Apple still refused to reinstate Epic's developer account. Things are changing now that the EU has implemented the Digital Markets Act (DMA). The new rules force Apple to open up its iOS ecosystem to third-party app stores in the EU. Epic Games says it plans to open its iOS storefront in the EU this year. "I'll be the first to acknowledge a good faith move by Apple amidst our cataclysmic antitrust battle, in granting Epic Games Sweden AB a developer account for operating Epic Games Store and Fortnite in Europe under the Digital Markets Act," Sweeney says in a post on X.