The digital wall around iPhones that has prevented users from downloading software not approved by the App Store to their phones is about to crack in Europe. But according to a new report, Apple is already planning to patch holes caused by European Union (EU) laws, meaning the download might not be as free as we expected.
First, let's go back to April 2022, when the EU (a set of 27 European countries, including France, Germany and Spain) passed the Digital Markets Law. It went into effect in November of that year and is designed to address issues related to Apple's control over which apps can and cannot be downloaded to iPhones.
By March this year (2024), platforms will have to comply with EU rules or face disciplinary measures.
The law will not apply only to Apple. Google (which makes Android) and other platforms will also have to comply with the new rules, but unlike iPhones, Android phones can already install software that's not in the Play Store, Android's version of Apple's App Store. By the way, this practice of downloading apps from sources other than the official app stores is called downloading.
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Apple has fiercely defended its anti-sideloading stance, saying it makes iPhones more secure and relatively virus-free. Its critics – like Spotify – will loudly call its system anti-competitive because the App Store charges up to 30% commissions on all purchases made through it and gives Apple apps an unfair advantage.
According to a Wall Street Journal report (behind a paywall), Apple's current plans will continue to monitor apps downloaded outside of the App Store. What's more, it also plans to collect fees from these applications. Therefore, there may not be much difference between App Store and non-App Store apps.
Details have yet to be revealed, but Apple will most likely be able to maintain this level of control by adding new rules to its development tools licensing agreement. You need these tools to develop functional iPhone apps, whether you publish them through the App Store or not. By modifying the licensing agreement to include the controls and restrictions it normally imposes on the App Store, Apple could comply with the new laws without the situation changing much.
As with all leaks, we should take this report with a grain of salt. We don't yet know exactly what approach Apple will take, or even whether the EU will consider this leaked approach compliant, but recent history suggests that Apple will do the least it can.
Earlier this year, Apple was forced to allow developers to direct app users to payment systems other than those of Apple, which currently receives 30% of most third-party payments made through from it (small businesses pay a 15% commission). The kicker? Apple will apply a 27% commission to payments made through an alternative system. Given the hassle and minimal incentives, many developers have complained that this won't change anything.
Not European? you should still worry
If you're in the US or a post-Brexit UK, you're probably wondering what all this EU legal stuff has to do with you.
Well, first of all, it wouldn't be the first time that the EU action affects the iPhone for everyone. iPhone 15 models only changed the USB-C port when they did due to EU legislation and discussions in European nations over the technology's repairability caused Apple to preemptively launch self-service repair everywhere.
Even if Apple decides to digitally move these App Store changes to the EU only, other nations like the US and UK will likely consider doing the same. And if you have one of the best VPN services installed, there's a chance Apple will think you're in the EU and force it to give you access to non-App Store software.
So keep an eye out for changes to the way you can use your iPhone in March, although don't hold your breath because they'll be too substantial.
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