Apple is set to implement new fees and restrictions for app downloads outside its App Store in response to the new EU regulations aimed at challenging the company’s closed ecosystem, The Wall Street Journal is reporting.
Apple, defending its tight control over downloads through the App Store, claims it’s crucial for iPhone security. Critics argue the system is anticompetitive, citing high commissions and unfair competition with Apple’s own apps.
The European Union’s new Digital Markets Act (DMA) allows users in Europe to download apps directly onto their iPhones without relying on the iOS App Store.
Meta, Spotify, and other companies are already gearing up for the changes, with Meta exploring a system enabling app downloads directly from Facebook ads. Spotify plans to allow users to download certain iPhone apps directly from its website. Microsoft has also considered launching its own third-party app store for games.
Under the new EU law, Apple plans to maintain control through sideloading, reviewing each app downloaded outside the App Store. The company also intends to collect fees from developers offering downloads outside the App Store.
The proposed restrictions and fees, however, could reignite tensions with developers expecting more freedom under the new law.
Apple’s response to the EU law becomes a potential battleground in the company’s ongoing struggle to control third-party software and the substantial profits associated with it. The operating margin on the App Store is estimated to be between 70% and 80%.
The European Commission has been engaging with Apple and other tech companies to discuss compliance with the new rules. Apple is yet to present a final solution for review, and the legislation has both clear-cut requirements and rules open to interpretation.
Apple recently faced a court order related to Epic Games’ antitrust case, requiring the company to allow developers to direct users to alternative payment systems
