News today from Apple’s supply chain. And Google is ramping up towards compliance with the European Union’s new regulation ahead of enforcement.

iPhone 14 supply issues to be limited in scope

According to a tweet from notable supply chain analyst Ming-Chi Kuo, certain iPhone 14 components have been constrained. Particularly display and memory components. Though Kuo asserts that Apple should be able to minimise the impact through the work it has done to diversify its supply chain.

Apple has long enjoyed a robust supply chain. But given the difficulties created by the pandemic in addition to economic headwinds such as inflation, Apple has sought to minimise reliance on any one supplier. That seems to be paying dividends if Kuo’s reporting is accurate.

The iPhone 14 family of phones are expected to launch in September as is usually the case in previous years.

Google Play enables 3rd party payment providers

In the European Union, Google has opted to enable third-party payment processing on the Google Play Store, albeit in pilot format. Customers in the EU will be presented with a choice to pay using Google’s own payment processing or a third party. Google refers to this as ‘user-choice billing’.

If a user opts to use a third party, Google collects 3% less commission on the purchase price. Typically 15%, the 3% cut in commissions represents Google’s attempt to get ahead of regulators. Just this week the EU approved its Digital Markets Act. The act will require platforms designated as a ‘Gatekeeper’ to offer a variety of payment methods within App Stores. Not just their own.

Google has opted to partner with Spotify to help them test the new system and make adjustments ahead of the implementation of the DMA.

Apple for its part has not announced any plans to offer these concessions. The DMA does not go into effect for at least 6 months. That period could be considerably longer as Apple is unlikely to come into compliance without putting up a fight. For instance, they could try to appeal the law, sue the EU, or argue against a presumed Gatekeeper status.

The AppleTLDR Take

It was interesting to see that Google has chosen to partner with Spotify in its pilot. One of the objectives of the DMA is to ‘limit self preferencing’ of dominant players. It’s ironic then, that Spotify is the largest music streaming platform and originates from the EU. You couldn’t make it up.

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