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Apple is preparing for the European Union’s Digital Market Act that seeks to break its closed app ecosystem on iPhones. The changes, which will only be enforced in Europe, would allow users to download apps outside the App Store.
The iPhone maker has time and again defended its App Store policy, which regulators and developers have called anti-competitive. The company says controlling downloads via the App Store is necessary for iPhone security. However, now that the European Union’s Digital Markets Act goes into effect in March, Apple is being forced to open up its walled garden. Still, it will maintain close oversight of sideloaded apps, reviewing each one and collecting fees from their developers.
Since the Digital Markets Act is restricted to the European Union region, it is unlikely that Apple would open up the iPhones to sideloading in other areas. The plan is being explicitly worked out for Europe. So, Apple could split its App Store into two separate stores – one for the European Union, where it will have to let users sideload the apps, and the other for the rest of the world, maintaining its closed app ecosystem approach.
Apple plans to collect fees from developers who offer downloads outside of the App Store, reports The Wall Street Journal, citing sources familiar with the matter. Then, sources further tell that the iPhone maker will review each app downloaded on the iPhone outside of the App Store.
While developers will be able to bypass the App Store, they will still be under Apple scrutiny. The move will be similar to how the iPhone maker is charging developers up to 27 per cent commission on in-app purchases even if they opt for a third-party billing option. Additionally, Apple would also have the right to audit developers’ records for compliance.
That’s already led to heavy criticism for Apple. Tim Sweeney, the CEO of Epic Games, referred to it as a “bad-faith compliance plan” in a post on X and stated that Epic intends to challenge it in district court. Spotify’s spokesperson expressed the move as “outrageous,” adding that it goes against the court’s efforts to promote greater competition and user choice. If Apple were to charge for sideloading, then it could receive a similar flak from the developers.
Even though Apple has not yet announced its plan to comply with the regulation, its rivals are already getting ready. Meta and Spotify have been preparing for the new regulations. The Facebook owner is considering a system that would enable people to download applications directly from Facebook ads, while Spotify plans to let users download iOS apps directly from its website.
The European Commission officials have recently met with Apple and other tech companies to discuss new regulations. Apple has yet to submit its final proposal to the commission. Once it does, the commission will review it to ensure it makes the market more competitive and complies with the law.
The iPhone maker has time and again defended its App Store policy, which regulators and developers have called anti-competitive. The company says controlling downloads via the App Store is necessary for iPhone security. However, now that the European Union’s Digital Markets Act goes into effect in March, Apple is being forced to open up its walled garden. Still, it will maintain close oversight of sideloaded apps, reviewing each one and collecting fees from their developers.
Since the Digital Markets Act is restricted to the European Union region, it is unlikely that Apple would open up the iPhones to sideloading in other areas. The plan is being explicitly worked out for Europe. So, Apple could split its App Store into two separate stores – one for the European Union, where it will have to let users sideload the apps, and the other for the rest of the world, maintaining its closed app ecosystem approach.
Apple plans to collect fees from developers who offer downloads outside of the App Store, reports The Wall Street Journal, citing sources familiar with the matter. Then, sources further tell that the iPhone maker will review each app downloaded on the iPhone outside of the App Store.
While developers will be able to bypass the App Store, they will still be under Apple scrutiny. The move will be similar to how the iPhone maker is charging developers up to 27 per cent commission on in-app purchases even if they opt for a third-party billing option. Additionally, Apple would also have the right to audit developers’ records for compliance.
That’s already led to heavy criticism for Apple. Tim Sweeney, the CEO of Epic Games, referred to it as a “bad-faith compliance plan” in a post on X and stated that Epic intends to challenge it in district court. Spotify’s spokesperson expressed the move as “outrageous,” adding that it goes against the court’s efforts to promote greater competition and user choice. If Apple were to charge for sideloading, then it could receive a similar flak from the developers.
Even though Apple has not yet announced its plan to comply with the regulation, its rivals are already getting ready. Meta and Spotify have been preparing for the new regulations. The Facebook owner is considering a system that would enable people to download applications directly from Facebook ads, while Spotify plans to let users download iOS apps directly from its website.
The European Commission officials have recently met with Apple and other tech companies to discuss new regulations. Apple has yet to submit its final proposal to the commission. Once it does, the commission will review it to ensure it makes the market more competitive and complies with the law.
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