Wind of change: Apple recognizes the inevitability of third-party app stores in Europe

Wind of change: Apple recognizes the inevitability of third-party app stores in Europe،

In 2022, the European Union introduced the Digital Markets Act (DMA), which came into force in all EU countries a year later last May. Apple and other big tech companies, seen as gatekeepers, have probably known for some time, if not years, that they would have to follow the new competition rules. Recently, European officials have again urged Apple to open its ecosystem to competitors, and now it appears that it must finally do so.

TechCrunch reports that Apple appears to have recognized the inevitable and declared that it “hope to do” is changing its App Store policies to align with the DMA. The language adjustment appears in the updated risk factors section of Apple’s fiscal 2023 form. 10-K Filing. This change signifies a departure from the company’s previous position, expressing a more specific commitment to possible changes to App Store policies.

Apple said the upcoming changes could impact how it charges developers for access to the platform, how it manages app distribution beyond the App Store, and how much in which allows developers to communicate with consumers regarding alternative purchasing mechanisms within the App Store.

The main goal of the DMA is to shift competition enforcement to the tech giants by imposing specific obligations on designated gatekeepers, such as Apple, Google and Meta, from the outset. These obligations include not preventing professional users from promoting their own offers to end users and prohibiting the installation of third-party application stores.

In a client report, analysts at investment bank Morgan Stanley expressed their belief that Apple’s changed language confirms the imminent arrival of changes to the App Store. They predict that Apple will likely introduce third-party app stores on devices in Europe, positioning the company well to compete due to the “App Store security, centralization and convenience“.

The deadline for gatekeepers to comply with the DMA is March 7, 2024, with penalties for violations of up to 10% of global annual revenue, or more for repeat violations. The tech industry is bracing for significant transformations as the DMA reshapes the landscape for major EU players.