Apple allows alternative app stores on iOS in the EU

In response to the EU's Digital Markets Act, Apple has announced significant changes to the iOS, App Store, and browsing functionalities on their devices.

As a response, users in the EU will now have the ability to choose their default web browser on iOS.

Additionally, there will no longer be limitations on the rendering engines used by non-Safari browsers, providing more freedom and choice to users.

Alternative App Stores on iOS

A major move by Apple is the allowance of alternative app stores on iOS, following a "baseline review" process for all apps, regardless of their distribution channel.

This change aims to mitigate risks for users by implementing a combination of automated checks and human reviews.

Furthermore, users will be presented with at-a-glance descriptions of apps and their functionalities before download, ensuring transparency and security.

NFC to Be Opened Up for Other Apps

In line with these changes, NFC capabilities on iPhones in the EU will be expanded to allow alternative wallet and banking apps to use tap to pay and be set as the default method for mobile payments.

This is a significant shift that may impact the mobile payment landscape in the region.

New Payment Options and Commission Fees

Apple is also introducing new payment options for developers within the App Store, including the use of payment service providers within apps and processing payments via link-out on the developer's external website.

In terms of commission fees, iOS apps on the App Store in the EU are set to pay reduced rates, with a 10% commission for the vast majority of developers and subscriptions following their first year, and a 17% rate on transactions for digital goods and services.

Furthermore, additional fees, such as a 3% payment processing fee, will be applicable for certain circumstances, like app installs over a specified threshold.

Benefits for Developers on Other Platforms

Developers utilising third-party payment methods on iPadOS, macOS, watchOS, and tvOS in the EU will receive a 3% discount on the commission owed to Apple.

These changes are aimed at providing more flexibility and incentives for developers on various Apple platforms.

Addressing Potential Risks

While these changes are extensive, Apple acknowledges that it may have "less ability" to address certain risks, such as apps containing scams, fraud, or objectionable content.

The company plans to share additional information with its customers in March to fully communicate the implications of these transformative updates on its ecosystem.

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