Apple Said to Prepare to Allow Third-Party App Stores on iPhone, iPad to Comply With EU Law
Apple is gearing up to permit alternative app stores on its iPhones and iPads as part of a comprehensive overhaul to comply with strict European Union regulations set to take effect in 2024. The company is undergoing substantial efforts led by software engineering and services teams to open up crucial elements of its platforms. This shift may enable customers to download third-party software to their devices without relying on Apple’s App Store, bypassing the company’s restrictions and up to a 30 percent commission on payments.
These changes, marking a reversal of longstanding policies, are a response to EU laws designed to level the playing field for third-party developers and enhance the digital experiences of consumers. The main legislation, known as the Digital Markets Act, will become effective in the coming months, with full compliance required by 2024. If similar laws are enacted in other regions, Apple’s initiative could potentially serve as a model for global application.
The Digital Markets Act mandates technology companies to facilitate the installation of third-party apps and allow users to easily modify default settings. The regulations also stipulate collaboration among messaging services and equal access for outside developers to core features within apps and services.
The efforts within Apple, overseen by Andreas Wendker and Jeff Robbin, involve a significant allocation of resources. The changes are anticipated to be implemented as part of the update to iOS 17 next year. Apple, traditionally against “sideloading,” where software is installed without using the official App Store, has argued that this process could compromise user safety and privacy.
The potential changes have already influenced stock markets, with companies offering dating services experiencing notable gains. Match Group and Bumble saw substantial increases, signaling investor optimism regarding potential relief from Apple’s commissions. Spotify also saw a positive impact on its stock.
While Apple is considering security measures for apps distributed outside its store, discussions are ongoing regarding compliance with the Digital Markets Act component allowing developers to install third-party payment systems within their apps. The company is also exploring opening more of its private application programming interfaces (APIs) to third-party apps, potentially removing the current requirement for third-party web browsers to use Apple’s Safari engine.
Despite these developments, Apple has yet to decide on aspects such as the opening of iMessage to third-party services, which could potentially impact end-to-end encryption and other privacy features. The company is in discussions about further opening its Find My network to competitors, such as Tile. The EU has threatened fines of up to 20 percent of a company’s annual global revenue for repeated violations of the Digital Markets Act. Apple, with its substantial revenue base, is expected to weather the financial impact of these changes.