Apple Inc. is preparing to allow alternative app stores on its iPhones and iPads in the European Union to comply with the new European competition law known as the Digital Markets Act (DMA). This significant change, expected to take effect as soon as late next year, represents a major shift in Apple’s long-standing policy of requiring all apps to be downloaded through its App Store.
One of the key aspects of this development is that it could allow major competitors, such as Google’s Play Store, to be accessible on Apple devices for the first time. This move could potentially present a significant challenge to Apple’s fast-growing services business. However, whether this leads to a substantial shift in consumer behavior remains to be seen, as Apple users are accustomed to the security and simplicity of the company’s own app store.
Under the DMA, Apple will also need to make other changes, such as allowing the use of alternative payment systems to Apple Pay and giving users the option to uninstall pre-installed apps and replace them with third-party ones. These changes will enable users to bypass Apple’s up to 30% commission fee for in-app purchases, which has been a point of contention among app developers.
Despite these impending changes, Apple has expressed concerns, stating that allowing sideloading and other app stores on its devices could expose users to increased risks of malware, fraud, and other security threats. The company has consistently argued that its tight control over the App Store is a matter of security and performance.
The enforcement of the DMA is expected to begin in mid-2024, and it aims to increase consumer choice by requiring big tech companies to open their systems to competitors. The impact of these changes on Apple’s business and the broader app market in Europe will be closely monitored as the situation evolves​​​​.
