Apple is preparing to make a series of sweeping changes to its iOS, Safari and App Store offerings in the European Union, to comply with new Digital Markets Act (DMA) rules, which come into force in March. This decision represents a turning point in how Apple has managed its app ecosystem thus far, leading to greater openness and flexibility in the application market. For years, Apple has faced criticism for its “walled garden” approach to the App Store. Developers have often complained about the company's high fees, which are considered a heavy financial burden. However, with the new provisions, Apple is aiming for a significant change.
Among the announced changes are “more than 600 new APIs, expanded app analytics, alternative browser engine capabilities, and options for app payment processing and iOS app distribution.” This opens the door for greater innovation and customization by developers. One of the most revolutionary new features is the ability for third-party app stores to operate on iOS. This marks the end of Apple's App Store's exclusive position as the sole distributor of iPhone apps. The changes will be available across the EU with the release of iOS 17.4 in March.
For the first time, Apple's EU customers will be able to legally download software outside of its App Store through new app marketplaces. Apps in these stores will need to be authorized by Apple to run on its software and to ensure compliance with DMA regulations. Apps installed from alternative sources using Apple's API will be visible in settings, with details on when they were downloaded and from where. As for developers, when they upload an app for Europe, they will be able to choose which app store to distribute it from. Apple will set up a notarization process for apps to review them for malware and other code issues.
In a historic breakthrough, Apple will allow app developers to bill their customers directly. This means they will be able to take credit card numbers within the app, or choose to direct users to their websites to collect payment information. Apple has been charging developers a commission of up to 30% since the App Store launched in 2008. With the new changes, app developers on Apple's App Store will pay a reduced commission of 10% or 17% on transactions for digital goods and services.
However, Apple has specifically stated that, while it complies with the DMA, it believes the new regulations may put its users at risk for scams, fraud and abuse, as apps that do not pass through Apple's App Store are not subject to review of the content and may contain malware. Additionally, it warned that some new DMA-enabled browser apps that don't use Apple Webkit could affect system performance and battery life.
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