Apple is gearing up for substantial modifications to its iOS App Store, enabling users to download apps from external sources. This move is in response to a deadline set by the EU under the Digital Markets Act, mandating Apple to permit app installations from sources beyond the App Store.

With a deadline of March 6 looming, Apple aims to incorporate app sideloading in the anticipated iOS 17.4 update.

This adjustment aligns with regulatory requirements, fostering a more open ecosystem by allowing users greater flexibility in choosing where to download their apps.

Keep an eye on the forthcoming iOS update, as it signifies Apple's adherence to regulatory directives and a shift towards a more accessible app environment for iOS users.

Apple to Comply with EU Digital Markets Act by Splitting App Store and Introducing Sideloading

Apple is getting ready to implement app sideloading and split the App Store into EU and global portions to comply with the Digital Markets Act (DMA) of the European Union.

To meet the March 7 deadline, Apple plans to separate the EU App Store, following discussions between CEO Tim Cook and EU antitrust chief Margrethe Vestager.

The DMA mandates Apple to allow third-party app stores and sideloading, impacting how the App Store operates in Europe and fostering competition.

Developers can use third-party payment systems and promote offers outside the store. FaceTime and Siri will change to comply with antitrust regulations.

Apple's concerns about user data harm may lead to protection measures. The adjustments could impact conflicts like the legal battle with Epic Games, potentially allowing "Fortnite" to return with sideloading features. The exact method of splitting the App Store remains uncertain, with anticipated changes initially confined to the EU.

The company, known for its strong opposition to sideloading, cites concerns about the security and privacy of iPhones. Apple CEO Tim Cook has stated that app sideloading "would destroy the security of the iPhone and a lot of the privacy initiatives that we've built into the App Store."

While Apple will likely implement the minimum requirement to comply, it may introduce limitations and guardrails around third-party app stores and iPhone sideloading. Recent regulatory pressures in Europe also led Apple to promise third-party payment apps access to the iPhone's NFC chip, enhancing competition for Apple Pay.

The timeline for implementing these changes remains uncertain.

Apple Faces Potential Revenue Loss in Europe Amid Regulatory Changes

Apple, generating a quarter of its European sales, faces potential revenue loss due to regulatory changes. With services being a key revenue driver, hardware sales are mixed. As the App Store adapts to Digital Markets Act (DMA) requirements, Apple might charge fees for sideloading to offset potential revenue decline.

Critics and developers are already contesting Apple's approximately 27% commission on non-U.S. App Store payments.

Google's parent, Alphabet, derives about 29% of sales from Europe. Charging fees for "opening" ecosystems in the 27-nation bloc may become a trend for other platforms. Meta, for instance, delayed launching Threads in Europe and introduced subscription options for Facebook and Instagram users, signaling a cautious approach to regulatory changes.