Apple Seeks to Extend Commissions on Sideloaded Apps Despite New EU Law

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ICARO Media Group
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24/01/2024 23h04

In a bid to maintain its share of in-app purchases, Apple is reportedly considering implementing new fees and restrictions for apps downloaded outside of its App Store in the European Union (EU). This move comes as the EU prepares to enforce a new law allowing users to download apps without going through the App Store, a significant change that will impact how iOS apps are accessed and marketed.

After reducing commissions to 27% following a court ruling that required Apple to allow app developers to direct users to their own payment options via the web, the tech giant seems determined to extend its commission structure beyond apps obtained through its App Store.

Concerns over user security have been cited by Apple as the primary reason for its opposition to the new EU legislation, arguing that it could expose iPhone users to potential risks encountered on Android devices, which already allow sideloading. However, critics argue that Apple's claims are a means to maintain its control over app distribution and payments.

While the new law will specifically apply to European markets, it has already prompted companies to explore alternatives to the App Store. Microsoft is reportedly considering the establishment of its own app store for mobile games, while Meta (formerly Facebook) is exploring the idea of allowing users to download apps directly from its platform. Additionally, Spotify, a vocal critic of Apple, intends to provide app downloads on its website.

According to sources familiar with the matter cited by The Wall Street Journal, Apple's plans are not yet concrete and may still be subject to change. This suggests that the company is floating the news to gauge reactions before making an official announcement. Apple has not responded to requests for comment regarding these developments.

Apple's potential move to charge developers for in-app purchases made on sideloaded apps comes just after the tech giant asked a London court to dismiss a case filed by app developers claiming that Apple's 30% commission on apps and in-app purchases is unfair.

In complying with a recent Epic antitrust case ruling, Apple introduced guidelines allowing app developers to direct users to their own websites for payment processing. However, the compliance had various limitations, including predefined templates, restricted content language, and limitations on linking to specific websites. Furthermore, developers who participate in programs reducing their commissions are still prohibited from adding outside payment links to their apps.

Epic Games, the instigator of the lawsuit, expressed intentions to challenge Apple's compliance, claiming it was done in "bad faith."

As Apple contemplates extending commissions to sideloaded apps, industry watchers are keen to see how this potential decision could impact the app market and the ongoing battle over Apple's App Store policies.

(Note: The information provided in this text is speculative and based on the mentioned sources. Official statements or further developments may alter the course of events.)

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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