Apple to Allow Sideloading on iOS 17 EU

Apple is set to introduce a significant shift in its iOS app ecosystem, allowing third-party app stores on iPhones in response to the European Union's Digital Markets Act (DMA). The upcoming iOS 17.4 update in March will usher in these changes, marking a departure from the exclusive distribution role of the Apple App Store. Users in the EU can download "alternative app marketplaces" from their respective websites, subject to Apple's approval process. Once approved, users can choose to set a non-App Store marketplace as the default on their device, allowing the download of apps, even those not adhering to App Store guidelines.  Developers gain flexibility in payment options, choosing between Apple's services or integrating third-party payment systems without an additional fee to Apple. However, sticking with Apple's in-app payment system incurs an extra 3 percent processing fee. Apple maintains control over the app distribution process, requiring all apps to be "notarized" and imposing certain platform requirements, such as malware scanning. Developers may opt to distribute apps without paying a commission to Apple in the EU, selecting from the new fee structures or continuing with the existing App Store model.  Under the updated terms, apps distributed through the App Store using an alternative payment system will pay a reduced 17 percent commission on digital goods and services (down from 30 percent). Apps qualifying for Apple's reduced "small business" rate will face a 10 percent commission, with an additional 3 percent fee for those using Apple's payment processing system.  While the European Commission investigates the designation of iMessage as a core platform service, Apple's announcement does not address changes to iMessage. Other major tech companies, including Amazon, Meta, Microsoft, ByteDance, and Alphabet, are also designated as gatekeepers under the DMA, with some publicly announcing upcoming service changes in response to the regulation. The impact of Apple's adjustments, particularly the new commission rates, on vocal critics like Spotify and Epic Games, remains to be seen, as users in the EU decide between alternative app stores and payment methods or Apple's established options.