Starting on March 6, 2024, the European Digital Markets Act legislation will put an end to Apple’s exclusive control over the apps that can be installed on iOS devices. This legislation will challenge Apple to open up its ‘walled garden’ and allow other companies to create their own app stores for iOS. According to The Wall Street Journal, many well-known brands are preparing to enter this space alongside Apple.
The Digital Markets Act only applies in Europe and will require Apple to develop a new version of iOS that allows for ‘sideloading’ apps for the first time.
The WSJ reports that Meta is developing a system that will enable Facebook users to download apps directly from Facebook ads. This system could be a lucrative opportunity for the company as app makers purchase ads to bypass Apple’s User Acquisition blocks elsewhere.
Similarly, Spotify is working on allowing app downloads directly from their streaming service on desktop, enabling users to sign up on desktop and install the app to enjoy the service on mobile without going through Apple’s App Store and being subject to Apple’s 30% transaction fees.
It’s anticipated that numerous other big-name services, if they haven’t already implemented a similar system, will follow suit.
Apple’s Response
While Apple has not yet announced its plans for compliance with the new regulations, it’s clear that they are unhappy about it and will likely introduce fees and restrictions to comply with the law.
Recently, Apple levied a 27% fee on third-party transactions against alternative app store makers, making it more expensive to use a third-party app store than Apple’s existing system with their 30% cut.
Apple lost a case against Epic, which theoretically marked the end of Apple’s rule and gave a clear path to avoid their fees. It remains to be seen how Apple plans to navigate the Digital Markets Act in Europe, but it’s expected that they will introduce measures to continue generating revenue.
This situation is unfolding, and developments will continue to arise.
