Apple plans new fees and restrictions for downloading programs not from the App Store

Apple is preparing to introduce new fees and restrictions, as it plans to allow users to download applications outside its own App Store, reports The Wall Street Journal. This step is a response to the Digital Markets Act (DMA), which was adopted in the EU in 2022. It aims to break Apple’s monopoly on app distribution through the App Store. For the first time, users will be able to download apps to their iPhones without using the App Store, but only in Europe.

Companies such as Meta and Spotify are already preparing to offer new app download options in Europe. Meta is considering installing iPhone apps directly from Facebook ads, and Spotify plans to allow direct download of some iPhone apps from its website. Microsoft is also considering launching its own third-party app store for games.

Apple has defended its App Store policy, citing security and virus protection as reasons for controlling downloads. However, critics have called Apple’s system anti-competitive, accusing it of charging high fees and unfairly competing with its own apps.

Under the new approach, Apple will closely monitor apps downloaded outside the App Store through a process known as sideloading. The company plans to check every app downloaded from outside the App Store and charge developers who offer downloads outside the App Store. However, these plans are not yet finalized and may change. However, Apple has been developing its solution for more than a year to comply with EU law before the March 7 deadline.

The introduction of restrictions and fees could reignite tensions with app developers, who had hoped that the new law would free them from Apple’s restrictions and high fees. The European law is viewed as a regulation with significant enforcement potential, including fines and investigative powers.

The European Commission is meeting with Apple and other tech companies to discuss the new rules. Apple has not yet provided a final package describing its solution and has not tested its plans with market participants. The Commission will review Apple’s full package to determine whether it opens up the market and complies with all provisions of the law.

The DMA contains both clear requirements and those that can be interpreted in different ways, for example, “app stores are expected to have conditions that are fair, reasonable and nondiscriminatory.”

Apple’s reaction to the new EU rules is another potential battleground in its ongoing struggle to control third-party software and maintain high profits from the App Store. The company’s operating margin in the App Store is estimated to be between 70% and 80%.