Apple Inc. has declared its intention to permit alternative app marketplaces on its devices in the European Union, marking a historic shift in policy. This groundbreaking move is accompanied by a reduction in the fees charged within its App Store.
Responding to New EU Regulations
These adjustments are in response to forthcoming EU regulations, set to be implemented in March. While these changes are not currently set for the UK, similar scrutiny of Apple’s practices could follow with the progress of the Digital Markets Bill in the UK parliament.
Opening Doors to Competition
This alteration represents a significant departure from Apple’s longstanding practice of exclusively allowing downloads from its proprietary App Store, which it defends as a security measure. Critics have long argued that this policy stifles competition and creates a monopoly.
The criticism and legal challenges, such as those from Epic Games, have pushed Apple to revise its policies. Now, developers will be able to direct customers to alternative payment methods, although Apple will still impose a 27% commission. The change in Europe will enable developers to bypass Apple’s fees and stringent standards, reaching Apple’s user base directly through alternative app stores.
Substantial Fee Reductions
Additionally, Apple has announced a cut in in-app purchase fees from 30% to 17%, with further reductions for eligible developers. This marks a significant concession by Apple, influenced by EU policymakers. Developers will also be permitted to use alternative payment methods without Apple’s commission and distribute apps through third-party stores without fees.
Developers exploiting the new fee structure will be charged a nominal fee after surpassing a million installations annually. This fee, according to Apple, will impact less than 1% of developers in the EU.
Enhanced Choices for EU Consumers
Beyond these financial changes, Apple is set to roll out additional features for EU customers, including access to the tap-to-pay chip in iPhones for the creation of third-party mobile wallet apps. Moreover, a menu of alternative browsers will be presented to users upon updating to iOS 17.4, with the option to set a different app store as the default.
