When the European Union passed the new Digital Markets Act last year, Apple had no choice but to comply with provisions that will fundamentally change how iPhone apps are distributed and purchased in the region. No longer will the company’s own App Store have an effective monopoly – alternative third-party app stores will be allowed, giving developers more options. At first glance, this may seem like a win for consumer choice and developer freedom. But in an exclusive new interview with Fast Company, Apple’s Phil Schiller warns that this openness comes with substantial risks to iPhone users’ safety and privacy.

Schiller, an Apple Fellow who has helped guide the App Store since its inception over 15 years ago, acknowledges that the new regulations “bring new options for developers.” However, he adds, “they also bring new risks. There’s no getting around that.” So even as Apple complies with the law, “we’re doing everything we can to minimize those risks for everyone.”

The first risk is the loss of Apple’s tight control over app content. “Ultimately, there are things that we have not allowed on our App Store – things that we didn’t think would be safe or appropriate,” Schiller says. Whether it’s objectionable content, malware, or privacy-violating apps, Apple has always barred such software from its store. “It will not be our decision whether those other marketplaces have the same terms and limitations.“

This is concerning because, for over 15 years, Apple has “dealt with a lot of input from families, from governments” on managing problematic apps. The company isn’t perfect, but it does have “rules around that,” Schiller points out. Alternative app stores, however, can set their own rules however they see fit. “Those rules will not apply in another marketplace unless they choose to make rules of their own, [with] whatever criteria they come up with.” And the more lax those rules, the higher the risk for users.

“Does that increase the risk of users, and families, running into objectionable content or other experiences? Yes, it does,” Schiller says plainly. He worries particularly about apps only available outside the App Store, which could force users “to say ‘okay’ to marketplaces without knowing a lot about them.” And once iPhone users grow accustomed to venturing outside Apple’s walled garden, they may let down their guard and blindly trust third-party stores, unaware of the dangers.

The story continues at Fast Company…

This article was originally published on February 3, 2024, at 10:30 am ET.