Digital Platform Policy Highlights - Digest 30

Q1 2024 to Q3 2024 Policy Changes: This post sheds light on how major tech companies are adjusting their platforms and policies to meet EU regulatory pressures. 🌍

Oct 30, 2024

This post is part five of a series documenting policy changes and feature improvements introduced by platforms in Q1 2024 to Q3 2024.

TL; DR→ Here are policy changes to address external regulations:

Apple will allow iOS app downloads from websites

Apple plans to allow some developers to distribute their iOS apps in the EU directly from websites. This change, prompted by the EU's Digital Markets Act, gives developers an alternative to the App Store and could reduce their dependence on Apple’s App Store. But developers would still have to adhere to certain rules set by Apple, and users would have to enable a setting allowing them to download apps from websites, making it a less seamless process than simply downloading an app from the App Store. They will also have to pay €0.50 core technology fee for each download above 1 million downloads in a year. (link)

Apple to allow retro game emulators on App Store

Thanks to the EU’s Digital Markets Act, Apple will enable users to download and play games from older consoles directly on their iOS devices, by allowing retro game emulators to join the App Store. Additionally, Apple will open the door to “super apps”, which can host multiple services within a single application (think of WeChat). Technologically, though, Apple wants these sub-apps and games to be written in HTML5 instead of being a native app inside another app. Proponents argue that this opens the door to more potent business models and makes available a wider selection of apps to iOS users. (link)

Apple Removes WhatsApp from China App Store on Government Orders

Apple has pulled the Meta-owned apps WhatsApp and Threads from its App Store in China following government orders. These apps are also not available on the Android’s Play Store, however users can side load them by obtaining the apks, an option that is not possible on Apple. The Chinese government cited national security concerns as the reason for the removal. Some analysts see a retaliatory angle to this order: the Government was merely responding to the US trying to force a sale for TikTok, which has Chinese origins. This move highlights the difficulties that multinational tech giants face with the growing geopolitical tensions between the US and China. (link)

Meta’s new Multimodal open-source model (LLaMa 3.2) to skip EU

Citing concerns over meeting the EU's stringent data privacy regulations, Meta announced that it would not launch its new, multimodal Llama model (capable of handling text, videos, and images) in the European Union. Already available in the US since the last week of September 2024, this announcement means Meta’s LLaMa 3.2 will not be released in the EU, although the company’s larger, text-only models (e.g., LLaMa 3.1) will still be available. Meta’s decision highlights the tradeoff that the EU residents face: given that data is the new “oil”, regulations to protect the privacy of citizens may come at the cost of innovation in data-intensive technologies like AI. (link)

EU targets Meta's Subscription Model for Violating Competition Law

The EU believes that Meta’s subscription service for Facebook and Instagram, which allowed users to opt out of ads for a monthly fee, undermines fair competition and consumer rights. This is because the subscription effectively forces users to pay for privacy, thereby hindering choices. As per the European Commission, a choice-enhancing solution is to keep FB/Instagram free by showing non-personal ads and (if needed) charge for premium services. If found guilty, Meta could be fined “up to 10 percent of its global revenue and up to 20 percent for repeat offenses.” Meta’s prior attempt to stave off EU action by offering to reduce the price of the subscription has not worked. I wonder if “free with non-personalized ads” will ever fit into Meta’s business model. (link)

X blocks accounts and posts on orders from Indian government

X has disclosed that it will withhold certain accounts and tweets in India to comply with executive orders from the Indian government. This decision follows directives from New Delhi to temporarily block around 177 accounts and posts related to farmers’ protests to maintain public order. The Ministry of Electronics and IT, which issued the emergency blocking orders, claims that these posts and accounts violated the India’s Information Technology Act, 2000. X has had a contentious relationship with the Indian government in the past: in 2022, Twitter challenged a similar order and lost that case and was slapped a fine of 5 Million Rupees. (link)

Research help from Jennifer Xie, Angelina Wang, John Mai, Marshall Singer, Anantesh Mohapatra and Anna Li (Thanks a ton, folks!)

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