iPhone users in the European Union will be able to download apps from websites, rather than through the App Store or a rival app store, Apple said, in the latest change imposed by the European Commission’s Digital Markets Act.
It’s a big turnaround for Apple. The company has fought for years against downloading iPhone software from the Internet — often called sideloading — citing security concerns and Apple’s right to dictate its user experience.
Tuesday’s announcement is the latest example of the Digital Marketplaces Act forcing Apple to make long-resisted changes to the App Store’s business processes. The DMA was designed to force the “gatekeepers” — large tech companies including Apple — to open up their platforms to smaller competitors.
The web download program will start later this spring and requires developers to meet “specific criteria,” such as having an app with more than a million downloads in Europe. Apple will continue to collect the fee, it said.
Apple said companies can also offer an iPhone app store in Europe, as long as it only offers access to one company’s apps.
“Distributing apps directly from a website requires accountability and oversight of the user experience, including the ability to manage apps and provide customer support and returns,” Apple said on a support page posted Tuesday. “Apple will authorize developers once they meet certain criteria and commit to ongoing requirements that help protect users.”
According to the DMA, Apple was forced to allow third-party app stores in Europe, reinstated antitrust rival Epic Games’ developer account amid a legal dispute, and dropped a ban on web app shortcuts on the iPhone’s home screen. Apple’s moves suggest that the European Commission will be able to successfully regulate Apple in the region by threatening fines and other measures for non-compliance.
European Commission Executive Vice President Margrethe Vestager said the European Commission is scrutinizing Apple’s competitors such as Spotify — which backed Apple with a recent EU fine of $1.95 billion for a related app store practice called stewardship — to make sure they Apple’s new policy is in line with the spirit of the law.
“We will want to hear from third parties,” Vestager told CNBC on Monday. “Are they getting what the DMA is supposed to give them, which is an open market?”
Apple still plans to charge a fee of fifty euro cents for app downloads outside of its App Store, including web app downloads. Apple’s App Store fees are a profit center for the company, according to the company’s services, which generated sales of $78 billion in fiscal 2023, including subscriptions and other items.
The company said Europe represents about 7% of Apple App Store revenue.