Apple, known for its tightly controlled App Store ecosystem, looks set to make significant changes in response to upcoming European Union regulations. The company is preparing to split its App Store into two distinct versions – one for EU member states and another for the rest of the world.
This move, expected to happen sometime in the coming weeks, is in response to the EU’s impending Digital Markets Act (DMA), which mandates that “gatekeeper” platforms like Apple’s App Store must open up to alternative app stores and sideloading.
Under the DMA, starting March 2023, EU iPhone users will gain the ability to install apps from sources outside Apple’s App Store. For example, this would pave the way for the popular videogame Fortnite to return to iOS in the EU via its publisher’s own Epic Games Store.
Apple has long voiced concerns that sideloading could expose users to risks like malware and unauthorized data tracking. There may be some truth to that, but another unavoidable truth is that third-party app stores and sideloading threaten the huge profits Apple makes by taking a cut of App Store sales.
However, with potential fines of up to 20% of its global revenue for non-compliance, Apple looks ready to bite the bullet and make the change. Only making these changes where it has no other choice is pure damage limitation. It will surely wish to resolve the situation before the release of Vision Pro in EU markets, lest it bump into similar regulatory troubles there.
The split will create a unique situation where EU users have access to a more open app ecosystem, while the rest of the world continues under Apple’s more controlled environment. This could mean EU citizens get the chance to install apps that Apple would never normally allow on iOS, such as video game emulators and virtual machine hosts. Of course, it’s already possible to sideload apps using services like AltStore, but this regulatory change would make the process much simpler for those in the EU.
The change also presents both challenges and opportunities for developers who now have to navigate these two different App Store models. Apps sold outside of the iOS App Store aren’t subject to Apple’s 15-30% cut, meaning developers could potentially pass on those savings to the user.
Apple’s decision to split its App Store marks a significant moment in the ongoing debate around digital marketplaces and user freedom. While this move aligns with the EU’s push for more open digital markets, it also sets a precedent that could shape the future of app distribution and platform regulation worldwide.