EdTech Insight – Apple faces ‘strong action’ if App Store changes fall short, EU’s Breton says

by | Jan 26, 2024 | CNBC, News & Insights

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Executive Summary and Main Points

Recent developments in the education sector, with particular focus on the international higher education and digital transformation space, spotlight Apple’s adaptation to the European Union’s Digital Markets Act (DMA). Apple faces potential strong action from the EU’s industry chief if their App Store changes do not align with the new regulations. Notably, by early March, Apple will allow alternate app stores on iPhones and provide options outside of Apple’s in-app payment system known for charging high commissions. Despite these changes, there is criticism regarding their sufficiency in promoting fair marketplace competition and their adherence to the DMA. Additionally, despite the opt-out, a “core technology fee” will still be imposed on developers.

Potential Impact in the Education Sector

The shift towards alternative app stores and payment systems could significantly impact Further Education and Higher Education, by potentially reducing costs for educational institutions that rely on app-based resources and services. The move may also influence the distribution and affordability of Micro-credentials, ensuring broader access for learners. For developers of educational technology, this could mean increased strategic partnerships with alternative platforms and reliance on digitalization to enhance the delivery of education services.

Potential Applicability in the Education Sector

With these changes, AI and digital tools within global education systems may see an expanded reach. Institutions might leverage alternative digital marketplaces to distribute proprietary educational apps, helping to foster an ecosystem that promotes accessibility and innovation. Furthermore, the decreased reliance on a singular app store could enable the introduction of more specialized and region-specific educational tools, designed to cater to the unique needs of diverse student populations globally.

Criticism and Potential Shortfalls

Critics argue that Apple’s new policies do not offer significant benefits and that high fees continue to pose barriers. Real-world examples such as the dissatisfactions voiced by Proton’s CEO and Aptoide’s CEO, demonstrate the perceived practical limitations of the new policies. From an ethical and cultural standpoint, the impact of introducing alternative app stores on cybersecurity and privacy within educational apps requires comprehensive scrutiny. Comparative international case studies relating to app marketplace competition could serve as a reference to better understand these dynamics.

Actionable Recommendations

For international education leadership, exploring the use of alternative app stores could be vital in driving down costs and fostering a more diverse and competitive market for educational technology. Strategic insights include closely monitoring the implementation of the DMA regulations, engaging in collaborations with alternative app platform developers, and advocating for the interests of educational stakeholders to the EU. Importantly, securing the digital privacy of students and educators must remain a priority throughout this transition.

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Source article: https://www.cnbc.com/2024/01/26/apple-faces-strong-action-if-app-store-changes-fall-short-eus-breton-says.html