Apple Ready To Split The App Store In Two and Allow App Sideloading

Introduction

Apple is currently grappling with several challenges, including the well-known legal battle over the patent infringement of the Apple Watch’s Blood Oxygen sensor and, notably, the impending update to the App Store version allegedly expected soon in European countries. In this article, we will delve into the details of the latter. More information on the latest developments regarding the Apple Watch ban is available here.

About the Digital Markets Act

In a significant development, the European Union's Digital Markets Act (DMA) has designated major tech companies, including Apple, as 'gatekeepers' who significantly influence digital markets like the App Store. As gatekeepers, these companies are required to offer users a choice of their preferred app store, web browser, search engine, and voice assistant during initial device setup. This initiative is designed to encourage competition and allow users to customize their digital experience.

With Apple identified as a gatekeeper, iOS 17 has been expected since last year to be instrumental in transforming the digital landscape. The Digital Markets Act mandates compliance by March 6, 2024, meaning that Apple's forthcoming iOS 17 update will likely include features to meet these regulations while maintaining a smooth user experience. However, these developments are not particularly advantageous for Apple. Consequently, these changes were not implemented immediately with the initial release of iOS 17. It is likely that Apple will implement these changes only in affected areas (EU countries) and closer to the compliance deadline.

App Store in the EU & App Sideloading

While the specifics of Apple's response to the European Union's directives remain uncertain, it's highly likely that alternative 'unofficial' app stores will surface. These stores would enable users to install apps outside the conventional App Store framework that has contributed significantly to the iPhone's global popularity.

Bloomberg reports that Apple plans to divide the App Store into two segments: one for Europe and another for the rest of the world. The European version will permit EU users to install apps from sources outside the official App Store and provide alternative payment methods, including paying outside the App Store for services acquired through it.

This approach is anticipated to be adopted by other countries as well, in a bid to liberalize the App Store's operations. This scenario bears resemblance to the changes Microsoft faced with Windows in the 1990s, as it began to dominate the global market.