Apple preparing for third-party app stores by 2024

Posted:
in iOS edited December 2022
Apple is reportedly bracing itself for European Union law changes that will come into force in 2024, and is preparing for third-party app stores to exist on the iPhone and iPad.

App Store
App Store


The introduction of the Digital Markets Act by the EU will stands to cause major changes for app marketplace operators like Apple, specifically by allowing third-party app stores to exist on iPhone and iPad. With the rule changes on the horizon, Apple is said to be getting ready to fall into compliance.

Engineers on software and services teams within Apple are allegedly pushing to open up a number of key parts of Apple's platforms to allow for future compliance with the rules, people familiar with the work told Bloomberg on Tuesday.

The Digital Markets Act applies to companies who provide browsers, messaging services, or social media to at least 45 million monthly end users in the EU. At the same time, they must have 10,000 annual business users, a market cap of at least 75 billion euros ($82 billion) or a yearly turnover of 7.5 billion euros ($8.2 billion).

The EU is expected to announce which companies classify as gatekeepers that must follow the rules in spring 2023, and will have six months to comply with the law. Due to Apple's size and vast customer base, it's almost certain that Apple will be part of that group.

The report claims that the changes will enable third-party app stores to be used without the App Store itself. Doing so would allow apps to avoid Apple's various App Store-based restrictions for security and safety, as well as the 30% store commission it collects.

Andreas Wendker, a VP reporting to Craig Federighi, as well as engineering manager Jeff Robbin who reports to Eddy Cue, are reportedly involved in the push.

Apple is also claimed to be putting "a significant amount of resources" into the effort, though some engineers apparently see it as distracting from feature development.

It is expected that the feature changes could arrive in an update to iOS 17.

A "Just in case" move

The report claiming that Apple is working to comply with a law in an area in which it does business makes sense from a preparatory standpoint. Apple starting to develop the ability to load apps from other sources outside the App Store is clearly being done to be in compliance with the EU laws mandating it.

Apple will likely fight the requirement until the day it is required. The company has frequently called alternative stores and jailbreaking a security threat for users, and it seems unlikely to change its attitude regarding that position.

Apple developing a solution to prepare for the future, does not mean that it will see the light of day. It also doesn't mean that it will make the ability available world-wide.

Should it succeed in its fight, it probably won't launch at all.

That's not all, folks

While the App Store and side-loading will be the biggest scalps critics of Apple will claim from the Digital Markets Act changes, there are a number of other provisions that Apple will also have to deal with.

For example, Apple will have to make changes to enable third-party payment platforms, rather than its own in-app payments system.

It will also need to open up its various services and features to others, such as allowing app integration with iMessage, or to set another digital assistant as the default instead of Siri.

Then there's access to hardware features typically restricted or blocked off to apps. This could include granting more access to the iPhone's NFC system, which would enable alternative wallet apps and payment systems to compete against Apple Pay directly on the iPhone itself.

There can be changes that prevent Apple from giving its own apps preferential treatment over others, such as minimizing how Apple can promote Apple Music or Apple Arcade in the App Store.

Other restrictions on default apps and forcing the use of specific frameworks or browser engines could also be lifted under the same alterations.

There is a hefty incentive to compliance for Apple. Those who violate DMA rules could face a fine of up to 10% of their annual global turnover.

Read on AppleInsider
«13

Comments

  • Reply 1 of 44
    It’s crazy and it’s shift, and really, I just care about privacy and safety that Apple builds its devices And software around. Hope that remains core.
    jas99lkruppJaiOh81watto_cobrajony0
  • Reply 2 of 44
    Since nobody is forced to use a third party App Store this is a good thing. Personally I believe that iOS (and iPadOS) are much more important for security than the App Store and that the App Store is more about policy (and money).
    CheeseFreezedesignrTheObannonFiledarkvader
  • Reply 3 of 44
    Amazing how entitled the EU thinks they are where they can pass a law for themselves, but feel they should be allowed to take 20% of a companies global revenues for any infraction that only exists within their market.
    rob53williamlondonAnilu_777watto_cobrajony0
  • Reply 4 of 44
    DAalsethDAalseth Posts: 2,786member
    xyzzy-xxx said:
    Since nobody is forced to use a third party App Store this is a good thing. Personally I believe that iOS (and iPadOS) are much more important for security than the App Store and that the App Store is more about policy (and money).
    The problem is that we will have no choice. Want Adobe or MS software? Use their store. Want games from any of the big companies? Use their store. Want games from small developers? Plan on loading the app for some warehouse AppStore that charges really low commissions. There will be a flight from Apple’s AppStore and we all will have a full page of different AppStore apps. Little of what we want, other than Apple’s own software will be available on Apple’s store. 
    rob53williamlondonravnorodomAnilu_777FileMakerFellerblastdoorforegoneconclusionradarthekatJaiOh81tht
  • Reply 5 of 44
    JP234 said:
    It begins. Prepare for malware on your iOS devices.
    As opposed to the scams we have now?https://www.washingtonpost.com/technology/2021/06/06/apple-app-store-scams-fraud/ ;
    williamlondondarkvader
  • Reply 6 of 44
    AFAICT this does NOT require Apple to give up control or fees.   An "App Store" will be a new class of app that can be distributed by Apple. And you can bet (just like the 3rd party payments) that Apple will charge fees.  Ie: if you want to have an App Store then 30% of your revenues will go to Apple. 

    I've long said this is a no-brainier for Apple. There absolutely should be choices in App Store because the Apple one is full of rubbish. There is a market for a real decent curated App Store where consumers (eg: parents of young children) can get a curated selection of Apps and better support.  I would happily pay more for this. And I would expect the App Store fees for these other app stores to be significantly higher - 70% to 150%. The same as retail. You go to a physical store that sells software (effectively curated) then that shop will be charging at least 200% of the wholesale price. 

    And just like Apple require social media apps to enforce content moderation, they will require app stores to require content moderation and if the App Store fails to do at least as good a job as Apple, then they will get banned as an App Store until they fix their content moderation.

    So no, there is little security risk and little economic impact for Apple with 3rd party app stores. 

    And lastly - I don't want Apple Music and I'm absolutely sick and tired of seeing it everywhere on my iPhone - no other app can stick advertising in general settings
    or the music app or on the startup/registration screen and Apple have been absolute idiots about it. I tick the box that says NO and I should not see that advertisement again. But they just have to try and upsell it to be on every new screen on the device and every time I install an update.  It's about time some authority told them this is effectively unfair competition. They can keep doing it and let others advertise that way to or stop doing it themselves. 
    edited December 2022 zimmieAnilu_777FileMakerFellerappleinsideruser
  • Reply 7 of 44
    derekmorr said:
    JP234 said:
    It begins. Prepare for malware on your iOS devices.
    As opposed to the scams we have now?https://www.washingtonpost.com/technology/2021/06/06/apple-app-store-scams-fraud/ ;

    Ridiculous. Apple stops hundreds of thousands of scam Apps/developers a year. A few getting through doesn’t indicate a problem.
    macxpressAnilu_777radarthekatwatto_cobrajony0
  • Reply 8 of 44
    KTRKTR Posts: 280member
    Watch, I bet you this will back fire on the EU, AND benefit apple….lol.  I can see developers spending more money to maintain their own App Store,  the they gonna complain again… dumb asses JP234 said:
    It begins. Prepare for malware on your iOS devices.
    Fore sure, then the eu will complain again
    williamlondonAnilu_777JP234watto_cobrajony0
  • Reply 9 of 44
    KTRKTR Posts: 280member
    Pretty soon they will tell you what foods to eat
    williamlondonAnilu_777watto_cobra
  • Reply 10 of 44
    We’ll have to see what the law amounts to - Apple might still be allowed their commission on all sales in 3rd party app-stores, Apple might be able to disable key iPhone/iPad features if a user uses a 3rd party app-store due to security concerns, Apple might be able to charge many millions for each 3rd party app-store.

    And anyhow, this is just a version of something that already exists (e.g. enterprise app-stores) and requires a higher level ios developer account. Apple already has more than one app-store for example, there is the regular public app-store and then there is the b2b app-store that regular folks don’t get access to.

    And in the end, next to nobody will use the alternative stores - just like they don’t on Android.
    Where’s the facebook store on Android, or the Adobe store on Android, or the MS store on Android?
    That’s why it’s a distraction and a non-issue.

    edited December 2022 Anilu_777FileMakerFellerarthurbaradarthekatmuthuk_vanalingamAlex1N
  • Reply 11 of 44
    So does this mean I can go into Target and install my own cash register to collect revenue from my products?
    Anilu_777arthurbaradarthekatwatto_cobrajony0Alex1N
  • Reply 12 of 44
    DAalseth said:
    xyzzy-xxx said:
    Since nobody is forced to use a third party App Store this is a good thing. Personally I believe that iOS (and iPadOS) are much more important for security than the App Store and that the App Store is more about policy (and money).
    The problem is that we will have no choice. Want Adobe or MS software? Use their store. Want games from any of the big companies? Use their store. Want games from small developers? Plan on loading the app for some warehouse AppStore that charges really low commissions. There will be a flight from Apple’s AppStore and we all will have a full page of different AppStore apps. Little of what we want, other than Apple’s own software will be available on Apple’s store. 
    It sounds bad but it’s kind of good in a way. If I am in Adobe App Store, I know for sure it’s comig from Adobe and not those knock off apps that are seen so many in Apple App Store. Adobe App Store can pay Apple 30% to host it. 
    williamlondonAnilu_777
  • Reply 13 of 44
    They could still require an Apple Developer account in order to be tied to a 3rd party store and also need to be reviewed. Apple could still retain a little control to that extent. They just won't get the 15 or 30% from each sale if it's not sold on their store. 
    Anilu_777
  • Reply 14 of 44
    jimh2jimh2 Posts: 626member
    I hope those planning to host in 3rd party app stores do not think they will get the development tools for $99/year. this whole thing is hype. Frictionless purchases will always win and 3rd party stores will only attract a few zealots. The desirable customers who are young don’t do friction. 
    Anilu_777watto_cobra
  • Reply 15 of 44
    lkrupplkrupp Posts: 10,557member
    This whole story is based on a single rumor by Mark Gurman. That’s it. Now it has taken on a life of its own as if it’s confirmed fact. But that’s how things work these days I guess. If true rest assured Apple will do the absolute minimum required to comply with the EU laws and they will make it as difficult and uncomfortable as possible  for users to figure out how to turn on so-called side-loading. Users will be inundated with dire warnings of imminent catastrophe if they do so just as they are now in macOS when they want to download an unsigned app. Unsavory developers will be urging users to turn off iOS security just as they do now for macOS. 

    And if you read between the lines the end result will be the homogenization of the entire market. All platforms will be required to look the same, operate the same, interoperate the same. The concept of competition, in my opinion, will simply cease to exist because features, both hardware and software will be regulated all in the name of the customer. Looking at and using iOS or Android you will see little, if any, differences. Apple will be assimilated into the EU Borg collective.
    edited December 2022 FileMakerFellerwatto_cobrajony0
  • Reply 16 of 44
    Amazing how entitled the EU thinks they are where they can pass a law for themselves, but feel they should be allowed to take 20% of a companies global revenues for any infraction that only exists within their market.
    It’s no different than Apple or Google making their developers pay a hefty fee. They have the bargaining power to get their developers to pay on their terms and the EU has the bargaining power to get Apple and Google to pay on its terms. Entitlement and fairness have nothing to do with it. It is just business.
    darkvader
  • Reply 17 of 44
    Amazing how entitled the EU thinks they are where they can pass a law for themselves, but feel they should be allowed to take 20% of a companies global revenues for any infraction that only exists within their market.
    It’s no different than Apple or Google making their developers pay a hefty fee. They have the bargaining power to get their developers to pay on their terms and the EU has the bargaining power to get Apple and Google to pay on its terms. Entitlement and fairness have nothing to do with it. It is just business.
    The $99 fee to be a developer is “hefty”? And then if I develop a free app, Apple gets nothing. How is that hefty at all?
    bestkeptsecretradarthekatwatto_cobra
  • Reply 18 of 44
    Amazing how entitled the EU thinks they are where they can pass a law for themselves, but feel they should be allowed to take 20% of a companies global revenues for any infraction that only exists within their market.
    It’s no different than Apple or Google making their developers pay a hefty fee. They have the bargaining power to get their developers to pay on their terms and the EU has the bargaining power to get Apple and Google to pay on its terms. Entitlement and fairness have nothing to do with it. It is just business.
    This comment is so stupid I don’t know how to reply.
    bestkeptsecretradarthekatapplguywatto_cobrajony0
  • Reply 19 of 44
    Excellent. All these changes are overdue!
    darkvader
  • Reply 20 of 44
    neillwd said:
    So does this mean I can go into Target and install my own cash register to collect revenue from my products?

    Does Target have a program where they ask you to bring digital goods into their store to sell and then pay you when the sale happens minus 30%? If they did, then yes. But they don’t. They negotiate a price with you the supplier and then mark it up and sell it. 

    darkvaderAlex1N
Sign In or Register to comment.