Apple is forced to allow external app stores by the year 2024
The European market generated around $95 billion in sales for Apple, following the Americas with $170 billion
Apple Inc is getting ready to permit alternative app shops for its iPhones and iPads as part of its makeover to comply with the strict European Union regulations coming in 2024.
Employees in software engineering and services are working very hard to open up critical parts of Apple’s platforms. With the changes, customers will soon be able to directly download third-party software to their iPhones and iPads, getting around Apple’s limitations and up to 30% fee.
Apple is responding to EU regulations meant to level the playing field for third-party developers and improve consumers’ digital lives. The two businesses that manage the two biggest mobile app stores, Apple and Google, have long been criticised by regulators and software developers.
The company’s changes are planned to be applied in Europe, but Apple could lay the foundation for other regions. Shares of other companies have increased, a sign that other companies would profit from Apple’s commissions. Match Group Inc went up 10% and Bumble 8.6%, Spotify also rose 9.7%.
The law is called the Digital Markets Act and will come into effect soon, but companies will only be required to comply from 2024. It will require technology companies to permit third-party apps and allow users to change default settings. It also demands that messaging services join with other outside developers to get a more balanced access to core features in apps and services.
These laws will apply only to tech companies that are valued at $80 billion and have a minimum of 45 million monthly users in the European Union.
Apple spent years trying to defy ‘sideloading’ or the installation of software without the official App Store saying that side loading could allow unsafe apps on user’s devices and avoid privacy concerns. To aid in the safety concerns, Apple wants to mandate the need for security requirements saying apps should be verified by Apple. That process would carry a fee and Apple would take a 15% to 30% slice of revenue.
