Apple is preparing for a scenario where it will have to let its users install apps from sources other than its own App Store, as the new European tech regulations, dubbed the Digital Markets Act (DMA), are expected to come into effect soon.
The tech giant based in Cupertino has not revealed any details on how the process of sideloading will work. However, sources close to Apple told The Wall Street Journal that the company plans to impose fees and rules on developers who offer downloads outside the App Store.
The new European law, which aims to reduce Apple’s dominance over apps, will allow users in the EU to download software on their iPhones or iPads from alternative platforms.
However, according to the insiders, Apple intends to charge developers who provide sideloading options. Moreover, the company wants to keep the power to review every app that is downloaded outside its App Store. These plans are not official yet and may change.
The proposed limitations and charges may spark new conflicts with app developers, who hoped that the new law would enable them to reach users without being subject to Apple’s restrictions or high commissions.
Recently, Spotify, which is already exploring new download options in anticipation of the upcoming changes, and Epic Games, the maker of Fortnite, criticized Apple’s new policies that allow third-party payment systems, following a US federal court ruling.
After a long legal battle with Epic Games, the new rules state that developers still have to pay a hefty 27 percent commission on transactions made outside of the App Store (although smaller developers will face a lower 12 percent fee).
Apple’s response to the new EU regulations indicates another potential area of contention in the company’s global fight to maintain control over third-party software and the significant revenues that come with it.
In 2022, the European Union approved the DMA, with the goal of preventing the allegedly anticompetitive practices of tech firms. The DMA restricts gatekeepers, such as Apple, Google, Microsoft, Amazon, Meta, and TikTok, from engaging in behaviors such as self-preferencing, data exclusivity, and unfair trading.
The DMA also requires gatekeepers to provide interoperability and data portability to users and business users, as well as to allow users to uninstall pre-installed software. The DMA applies to gatekeepers that have a significant impact on the internal market and the lives of European citizens.