After numerous meetings with representatives of the European Commission, Apple has announced that next March, when it releases the update to its iOS 17.4 operating system, app developers will be able to sell iPhone applications outside of the App Store, which For 15 years it has been the only platform from which software could be installed on Apple phones. The measure is motivated by the EU Digital Markets Act (DMA), which imposes strict controls on the main technology companies operating in the 27 community countries. The iPhone will also offer web browsers other than Safari and its NFC detection system for payments will also open to applications other than the Apple Pay system.
To make these changes possible, Apple has planned a series of procedures that must be followed by those who want to sell apps outside the App Store. According to the apple company, “new options for processing payments and downloading apps on iOS open new avenues for malware, fraud and scams, illicit and harmful content, and other threats to privacy and security.” For this reason, the Californian company will protect to a certain extent the apps that do not go through its store, in a process it calls “notarization” for apps, which will mean de facto authorization for those who promote an external store.
Apple’s control will include a basic review of the apps so that they comply with policies such as informing users about the permissions they will require to be installed. In practice, it will mean that an app cannot be installed on an iPhone if it is downloaded, for example, from a website. It will have to be through an application store that is registered by Apple, which points out that the new terms have been explained to those responsible for the European Commission.
Phil Schiller, Apple executive responsible for the App Store, noted in a briefing note that the announced changes “meet the requirements of the Digital Markets Act in the European Union, while helping to protect EU users.” of the inevitable increase in threats to privacy and security that this regulation entails.
The control that Apple will have over apps external to its store includes the reference review that it now applies to all apps, and which is “focused on the integrity of the platform and the protection of users.” This procedure includes an automated certification part and another that will be carried out by human reviewers. When everything is correct, the company will provide an installation sheet for the app. Additionally, to “ensure that marketplace developers commit to ongoing requirements that help protect users and developers.” Finally, Apple will have to grant authorization to anyone who wants to create an app store.
The iPhone company assures that it is committed to “protecting the privacy, security and quality of the iOS user experience in the EU to the extent possible.” One of the controls that will continue to work on apps is App Tracking Transparency (ATT), which forces apps to ask a user for permission when they want to track their data in other apps and websites. . Options like “Family Sharing” will not work with that external software.
The fact that Apple provides some services to apps that come from platforms other than its own will imply the payment of a basic technology fee that consists of 0.50 euros for each first annual installation that exceeds one million users. This fee is also paid by those who go through the App Store, who also pay commissions that will now be reduced, either 10% (for the vast majority of developers and for subscriptions after their first year) or 17% on transactions of digital goods and services, regardless of the payment chosen.
The Cupertino company estimates that with the new conditions more than 99% of developers will reduce or maintain the rates they pay now and that less than 1% of developers will pay the basic technology fee. Currently, 88% of developers do not pay for the apps they sell in the EU, 9% pay 15% and only 3%, who bill large volumes, pay 20%.
In addition to the changes in the opening of stores external to the App Store, the EU Digital Markets Law leads Apple to also offer its users the possibility of installing a third-party web browser other than its own, Safari. . Starting with the arrival of iOS 17.4 next March, every time a user opens Safari for the first time they will be offered a fairly complete list of alternative browsers that they can install so that they are the one used by the iPhone by default.
The last big change that the EU Digital Markets Law will entail is that the NFC chip in iPhones, which now only works for the Apple Pay payment system, can also be used by other apps that can be used to make payments. Other uses of NFC, such as wireless connection with other devices and appliances, will continue to be restricted.
