In a recent press release, Apple announced several changes to its app ecosystem in the European Union (EU), including allowing iPhone and iPad users to install apps outside of its App Store through third-party app marketplaces.
These alternative app marketplaces will operate as standard iOS apps that can install other apps on the iPhone or iPad. Any EU developer can create an app marketplace if it meets specific requirements related to fraud prevention, customer support and overall experience, says Apple.
Apps installed via a third-party app store will go through a process that requires additional safety and security checks, similar to how Mac apps currently work. Users must also grant permission for a marketplace to be installed on their device.
“The new options for processing payments and downloading apps on iOS open new avenues for malware, fraud and scams, illicit and harmful content, and other privacy and security threats. That’s why Apple is introducing protections — including Notarization for iOS apps, an authorization for marketplace developers, and disclosures on alternative payments — to reduce risks and deliver the best, most secure experience possible for users in the EU. Even with these safeguards in place, many risks remain,” writes Apple in a recent press release, emphasizing the potential security risks these changes pose.
Notably, the tech giant won’t take a commission from apps installed through third-party marketplaces. Developers can also implement alternative payment methods into their apps, including linking to a website. However, Apple is enacting a €0.50 fee per install per account annually on third-party app installs. This fee only starts after 1 million installs; third-party app installation is free for developers before that mark.
EU developers that opt to continue to use Apple’s App Store will pay a 17 percent fee instead of 30 percent, and that cut drops to 15 percent for subscriptions that are over a year old. Apple’s small business commission is cut to 10 percent.
A few weeks ago, Apple confirmed it would allow developers to link to alternate payment methods outside of the App Store in the U.S. as long as the app also offers the ability to purchase directly through Apple’s digital storefront, through a new “entitlement” system. This system includes a 12 percent cut for developers that are part of the App Store Small Business Program and 27 percent for other apps. Apple also still plans to take a commission from out-of-app purchases but admits that this will be “impossible” in some cases. It remains unclear if this will also affect the Canadian App Store.
Other changes to Apple’s operations in the EU include users being able to select their default browser after updating to iOS 17.4. Further, developers in the UE will have access to the iPhone’s NFC, opening it up to the ability to emulate more cards (like transit passes). These changes are available now in the iOS 17.4 beta and will release publically in the EU in March 2024.
To be clear, none of these changes are coming to Canada or the United States and are only happening for the company to comply with the EU Digital Markets Act and its March 6th, 2024 deadline.
In other Apple-related news, the company recently revealed plans to allow game streaming services like Xbox Game Pass in the App Store.
Image credit: Apple
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