In addition to doing the bare minimum to comply with the EU’s new rules, Apple is likely to appeal the “Gatekeeper” designation, which could push the enforcement of the EU’s Digital Markets Act against Apple well beyond next March when it’s otherwise expected to go into effect. CommentĮven if Microsoft manages to convince regulators to approve its acquisition of Activision Blizzard, it’s likely to face an uphill battle getting its games onto the iPhone - at least in the way it wants to. Microsoft even went so far as to promise the Call of Duty would be available for up to 10 years on rival consoles, but regulators have heard that song before as the Financial Times notes, Microsoft made a similar assurance to the EU when buying games company ZeniMax in 2021, but reversed course before the ink was even dry on the deal. While it’s tried to make the argument that it would be shooting itself in the foot by doing such a thing, regulators in the U.S., U.K., and Europe aren’t convinced. Still, Microsoft’s acquisition of Activision Blizzard is far from a done deal, and it’s perhaps ironic that it’s facing similar anticompetitive concerns to the ones that it’s levied at Apple.Ĭhief among these is the fear that Microsoft would make Activision’s games exclusive to its Xbox platform. While that’s no different from the way commerce works in most other scenarios, it would be a new way of doing things on the iPhone, which has had only a single App Store since its inception 15 years ago. Some fear this could bring a kind of fragmentation to the iPhone ecosystem where customers would have to install and deal with multiple app stores, each with different payment systems and terms and conditions, just to have access to the same range of apps that are currently available from Apple’s App Store. Spencer told the Financial Times that having these hit titles in a Microsoft-owned store would be “critically important” to attracting players away from Apple’s App Store and Google’s Play Store, suggesting that these titles would be pulled from other marketplaces in an effort to make the Xbox Mobile Store the only source for some of the most popular titles. Nevertheless, Microsoft wants to make sure it’s ready, and should the Activision Blizzard deal go through, it aims to have an Xbox Mobile Store on the iPhone and Android where titles like Call of Duty Mobile, Diablo Immortal, and Candy Crush Saga will be sold - and likely exclusively. While the EU intends to enforce these new rules quite vigorously, it may take some time before other markets like the U.S. It’s also unclear how this will apply outside of Europe. How that will actually play out in practical terms is a bit more complicated, though Apple will undoubtedly look for ways in which it can comply with the letter of the law while maintaining as much control as possible over its platform.įor instance, the new EU rules only say that Apple and other large online platforms must “allow and technically enable the installation and effective use of third-party software applications or software application stores.” This means that Apple could get away with providing a way to side-load individual apps without actually opening the doors to full-fledged third-party app stores. The EU’s Digital Markets Act is expected to come into force in March 2024, which will mandate that Apple open up its App Store ecosystem to competition. When it comes to the European Union, he’s likely right. However, Microsoft Xbox chief Phil Spencer feels that part is a done deal. Of course, the other key requirement is for Apple to actually start allowing other app stores on the iOS platform. That’s because this acquisition would provide Microsoft with the critical mass of titles that would be necessary to make its own app store a success. Although Microsoft has had to settle for a web-based version of Xbox Game Pass to fit within Apple’s guidelines, the Xbox developer hasn’t given up on its hopes of someday delivering a more comprehensive gaming experience to iPhone and iPad users.Īccording to the Financial Times, Microsoft is preparing to launch its own app store on the iPhone as soon as next year - provided everything lines up properly.įor one, it appears that Microsoft’s plans are at least somewhat conditional on closing its $75-billion deal to acquire Activision Blizzard.
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