According to a report, Apple is said to be preparing to allow third-party app storage space on iPhones and iPads in the European Union to comply with its upcoming competition law.
The sweeping change to App Store rules is Apple’s response to the EU’s Digital Markets Act (DMA), Bloomberg’s Mark Gurman reported on Tuesday. DMA targets ‘gatekeepers’ like Amazon, Apple, Google, Microsoft, Meta and others. The Act goes into effect on November 1st but gives those gatekeepers until March 2024 to comply.
Europe is Apple’s second-largest market and accounts for $22.7 billion in total sales of $90.1 billion for Apple Financial Q4 2022. However, Bloomberg Intelligence estimates the App Store accounts for 6% of Apple’s total revenue.
Also: Follow this one simple rule for better phone security
Enabling third-party app stores on iOS devices could potentially allow customers to sideload apps and bypass Apple’s rules, payment systems, and 15% to 30% commissions for payments.
According to Bloomberg’s sources, Apple’s software engineering and service employees are working hard to unlock key elements of Apple’s platform. It noted that the project could be the foundation of its system for other regions if similar legislation is passed in other markets.
For example, the Australian Competition Commission last month published the latest update to its five-year history. Digital Platform Services investigating, looking into the imposition of new anti-competitive rules on app stores and working on DMA.
The DMA prohibits gatekeepers from imposing unfair access conditions on their app stores or preventing users from installing apps from other sources. It also aims to make it easier for users to change the device’s default settings and to allow users to uninstall pre-loaded programs. Potential gatekeepers have until 3 July 2023 to notify the European Commission if they meet the DMA thresholds.
DMA apply to technology companies have an annual turnover of at least €7.5 billion in the EU for the past three years or have a market value of €75 billion or more. They must also have at least 45 million monthly end users and at least 10,000 enterprise users in the EU.
Bloomberg reports Apple’s DMA efforts are being led by vice president of software engineering Andreas Wendker, who reports to Apple’s top software executive, Craig Federighi. There’s also Jeff Robin, Apple’s service engineering lead.
Also: I thought about Apple’s AR/VR headset and I don’t believe it
This effort may not please Apple because of the European requirement for all companies to support USB-C from October 2024. Apple CEO argued last month that it “It would be better for the environment and better for our customers without an over-regulated government.”
Over the past few years, Apple has argued that the only reason there is less malware on iOS is because of their walled garden approach to installing and distributing apps. Google discourages but allows side-loading on Android. Federighi said at a European conference last year that with sideloading on iOS, “the floodgates are open for malware”.
According to Bloomberg, Apple is considering making certain security requirements mandatory for apps distributed outside of its store, including Apple’s fee-based verification. Apple is also considering allowing browsers like Chrome to use browser engines other than Apple’s WebKit, as well as opening third-party app access to the iPhone’s NFC chip, which is currently limited to Apple Wallet. and Apple Pay.
