According to a media report, Apple is preparing to allow alternative app stores on its iPhones and iPads in the European Union. As part of the changes, customers could download third-party software on their devices without using Apple’s online store, Bloomberg reported, citing insiders. The background to this is new regulations from the European Commission as part of the Digital Markets Act (DMA).
These are expected to come into force in mid-2024. It remained unclear whether Apple also plans to implement other specifications contained therein, such as the approval of alternative payment methods. A statement from Apple was not initially available.
App Store has had a monopoly until now
Until now, products can only be downloaded via the Apple Store, which presents itself as an app on devices with the bitten apple. The American group charges a commission of 30 percent on purchases. According to industry service Sensor Tower, the related deals amounted to about ten billion dollars last year. The new EU regulations could therefore jeopardize revenues in Apple’s services division if, for example, companies with their own app stores such as Microsoft, Meta or Amazon enter.
No major impact expected
However, CFRA stock analyst Angelo Zino assumed that no more than 0.2 percent of Apple’s total sales would be affected by direct competition from app stores in Europe. “Ultimately, the impact will be minimal because most consumers are creatures of habit and very happy with the platform,” he said. “We assume that the majority of consumers will maintain the status quo and use the existing app store.” Alphabet, for its part, has for years allowed so-called “sideloading” on smartphones with its Android operating system. As part of a lawsuit against Apple, “Fortnite” manufacturer Epic Games has stated that 90 percent of all downloads are still through the official Google App Store.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
