In a historic policy shift, Apple has announced plans to allow third-party app stores and sideloading on iPhones in the European Union when the Digital Markets Act (DMA) comes into force in March. The move signals a major challenge to Apple’s closed iOS ecosystem and stringent control over app distribution on iPhones.
Under pressure from European regulators, Apple said today it will enable “alternative app marketplaces” on devices running iOS 17.4, arriving alongside the new regulations. Users will be able to download stores like those operated by Amazon or Epic and install apps banned from Apple’s App Store.
Developers will also gain options to use third-party payment systems without paying Apple’s typical 30% commission. Those sticking with Apple’s in-app purchase system will now pay a reduced 17% fee, or 10% for small developers. A new annual “core technology fee” will also charge larger developers 50 euro cents for each EU user installing their app after the first million.
The sweeping changes are Apple’s attempt to comply with the Digital Markets Act (DMA), passed by the EU last year before it is enacted in March. The DMA aims to limit anti-competitive behavior by Big Tech “gatekeepers” like Apple who control access to key platforms.
While Apple has resisted opening iOS in the past, European regulators left the iPhone maker with little choice if it wants to continue operating in one of its largest markets. Nonetheless, the move may have ripple effects on app regulation worldwide.
It remains to be seen whether consumers opt for alternatives or largely stick with Apple’s ecosystem that promises safety, simplicity and integration with iPhones. But at minimum, after 15 years of strict control, Apple just gave iPhone users in Europe a little more freedom.
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