They fought back in Cupertino as long as they could. But now the Apple company has to bow to the European Union and unlock its golden cage at least a little. Apple also wants to allow alternative app stores and payment methods on the iPhone in the future. But the company doesn’t completely give up control.
Apple announced the decision on Thursday at its headquarters in Cupertino. In order to use the new options, the latest operating system version iOS 17.4 must be installed on the device. Apple is reacting to the legal requirements of the new EU law on digital markets (Digital Markets Act, DMA for short). Large and dominant providers, so-called “gatekeepers”, must therefore allow app stores from other providers. Previously, apps on iPhones could only be downloaded from the company’s in-house download platform.
However, Apple does not completely give up control over the installation of applications, even if apps are downloaded outside of its own app store. However, unlike Google’s competing Android system, these cannot simply be downloaded via a browser and installed at your own risk. Rather, customers must use “certified” marketplaces for this. These are iPhone applications that, with Apple’s blessing, are allowed to install other apps.
In an interview with the German Press Agency, Apple top manager Phil Schiller pointed out the risks associated with a direct installation. “If any website can download apps to the device, this poses a major threat to user security and privacy,” he said. The system that has now been introduced with a certification process also meets the requirements of EU law.
No control of business practices
Overall, however, users in Europe are exposed to a higher risk than users outside the EU due to the measures enforced by the DMA. With the currently announced implementation, Apple will in future be able to automatically check all apps for known malware and other security threats, including on alternative marketplaces. However, the business practices associated with the apps or the content shown there are not checked.
In parallel to the adjustments to the app stores, Apple is also introducing further changes to counter the EU’s accusations of monopoly. In the future, European users will be able to freely set the default browser in the iPhone. So far, the Apple browser Safari automatically opens all web links. In the future, you can also choose browsers from other manufacturers for these tasks.
Apple’s monopoly on contactless payment transactions with the iPhone is also falling in the EU. Until now, only the in-house payment service Apple Pay could use the iPhone’s NFC (“Near Field Communication”) function to make a payment at the supermarket checkout or other payment terminal. In the future, users will be able to determine which payment application should start by default.
Apple showed little accommodation when it came to the controversial revenue sharing for paid apps or in-app purchases. So far, Apple has required smaller developers and long-term subscriptions to share 15 percent in sales. Providers with a turnover of over one million US dollars per year even have to pay 30 percent. These commissions will now be reduced to 10 percent and 17 percent. If the developers use the App Store’s payment processing, an additional three percent is due. As a concession to the EU, Apple now allows developers to use an alternative payment processor in their app or direct users to a website to process payments without additional fees from Apple.