Apple Seeks Commissions, Control Over Non-App Store Apps in Response to EU’s Digital Markets Act. Apple is reportedly poised to announce significant policy changes in response to the European Union’s Digital Markets Act (DMA), with a March deadline approaching. The DMA mandates that Apple must allow iPhone users to load apps outside of the App Store, a move aimed at diminishing Apple’s dominant control over iOS software distribution.
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The specifics of how Apple will implement these changes remain unclear. According to The Wall Street Journal, Apple might still impose fees and conduct review processes for apps that are sideloaded, marking a first for app distribution outside of the App Store in Europe. There’s speculation about whether these fees will mirror the App Store’s current revenue-based model.
In the US, Apple has been charging a 27% commission on external links to alternative payment systems, a slight reduction from the standard 30% in-app purchase fee. This has raised questions among developers who initially believed bypassing in-app purchases could avoid these fees.
The pricing strategy for apps not distributed through the App Store is also uncertain. If the Wall Street Journal’s report holds true, Apple’s approach could potentially undermine some of the DMA’s goals to curb anticompetitive practices. Even with sideloading, Apple might retain significant control over iPhone software and continue to collect commissions.
Technically, Apple has the capability to manage these changes, but it remains to be seen if their approach will satisfy EU lawmakers. The Digital Markets Act is somewhat ambiguous regarding compliance for “gatekeeper” companies, and the European Commission may impose additional demands or sanctions after the March deadline.
Apple’s long-standing control and commission model for apps installed on iPhones outside the App Store may eventually face challenges, potentially leading to more substantial changes in the future.
An official announcement from Apple regarding iOS 17.4, which is expected to support app sideloading in Europe, is anticipated soon. This update will mark a significant shift in Apple’s app distribution policy, aligning with the broader regulatory movement in the EU to promote digital market competition.
