Technology giant Apple has been forced to open its proprietary App Store to outside developers in Europe as a result of new regulatory requirements adopted by the European Union. This marks a major concession from Apple, which has fiercely guarded control over its App Store till now
Getting another Apple App Store
According to the new EU Digital Markets Act targeting unfair business practices of Big Tech gatekeepers, Apple must allow third parties to install software applications on its iPhones and iPads without using the official App Store. Companies will be able to bypass Apple’s strict review process and 30% commission fee.
Apple has complied by announcing all registered developers will have equal access to the European App Store starting 2024. However, it will still retain control over hardware and operating systems. Commissions will be reduced from 30% to 27% for smaller developers.
This move aligns with other pro-competition actions Apple has taken recently under public scrutiny. Last year, it agreed to allow alternative payment systems in the App Store after an antitrust lawsuit. Critics have accused Apple’s walled garden ecosystem of stifling innovation.
Apple, founded in 1976, pioneered the concept of the smartphone and remains an unmatched leader in the premium devices segment. The Big Tech company is on track to become the world’s first $3 trillion company on the back of strong iPhone 14 sales worldwide. However, its dominance is proving to be a double-edged sword.