After almost 17 years of unquestioned dominance of Apple in the app market, the company is paving the way for alternative app stores on its devices. | Photo credit: Reuters
After almost 17 years of unquestioned dominance of Apple in the app market, the company is paving the way for alternative app stores on its devices. The change, currently limited to the EU market, will allow users to download apps from stores other than Apple’s App Store. Behind the iPhone maker’s move is a measure by EU regulators that can fine non-compliant companies up to 10% of their global annual turnover.
The European Union’s Digital Markets Act (DMA), which came into force on March 7, sets out obligations and bans for big tech companies like Apple, Alphabet, Bytedance, Meta Platforms and Microsoft. The law provides for penal provisions and aims to end the dominance of tech giants who play the role of ‘gatekeepers’. It puts an end to unfair practices that hinder the growth of new and alternative platforms.
Over the years, Apple has stood its ground when it comes to controlling the user experience by limiting where they can download apps. But developers, mostly big names like Spotify and Epic Games, have criticized Apple for its strict controls and high commissions. So allowing competing markets on iPhones is a big change for a company that has long cultivated its own walled garden ecosystem.
Apple’s iPhone devices come with the App Store pre-installed and it is the only place where iOS users can download their apps. The company charges up to 30% commission on all App Store transactions, which is a lucrative source of revenue for the company.
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Developers cringe
Alternative app stores, on the other hand, allow developers to bypass commissions by allowing them to reach potential users through alternative means. Sideloading, a feature that allows users to download apps outside the marketplace, allows developers to provide alternative payment methods that will reduce the cost of selling apps.
With thousands of apps added to app stores every month, alternative stores provide improved visibility for smaller developers. They can even reduce development costs and other related costs like marketing a new app and complying with strict rules set by OEMs.
For users, alternative app stores provide an easier transition between iOS and Android devices, as several Android apps, especially in the gaming sector, have found themselves cut off from Apple’s app store due to the company’s App Store policy. An example of this is Fortnite, a popular game whose parent company was banned from Apple’s App Store in 2020 for trying to trick users into buying virtual currency on its own website, a move that violated Apple’s policy.
Users also have the advantage of choosing between different app stores which improves competition. Users also get the option to choose cheaper apps and subscriptions and use alternative payment methods that can cost less than what they cost in official app stores.
Side loading side effects
However, sideloading apps and alternative app stores are not without problems. Apps distributed through Apple’s app store go through a review process that may not be available or not strict enough in alternative stores to prevent the spread of malware.
“The best thing about having a single app store that undergoes a review process for every Apple app would be that tons of fraudulent/malicious apps wouldn’t get into the public, which was the case with Android,” Abhishek said. Dharani, an online security engineer. “Probably many applications would 1711230452 just bypass such reviews and checks and install them on millions of devices and wreak havoc down the line.”
Apple argued that sideloading, through direct downloads and third-party app stores, would “cripple privacy and security protections” and “expose users to serious security risks.”
The iPhone maker further said that users may not get accurate information about apps downloaded from alternative app stores because those stores may not require developers to provide the necessary information that is displayed on App Store product pages and privacy labels.
So while Apple is opening up its ecosystem to comply with EU regulations, the real impact of the move can only be seen in light of how aware users are of spotting ‘spammy’ apps.