File Photo: A woman walks near the Apple store.
Photo Credit: REUTERS/EDUARDO MUNOZ
After forcing Apple to incorporate Type-C port in its devices, European Union is back with another ruling that may greatly impact the company's revenue flow from App Store.
In November 2023, EU passed Digital Markets Act (DMA) that makes it mandatory for companies to offer option to customers to install apps from third-party website and app stores other than official digital market place. In this case, the Apple App Store.
As noted earlier, this will affect Apple's revenue stream as devevelopers will be able to drive customers directly to their respective website to download apps and also offer discounts on in-app purchases. And, also they can set up their own payment gateway.
With this, Apple will not able to get any commission. However, to lower the impact, the Cupertino-based company is planning to break App Store in to two- one for EU and another for the rest of the world.
Apple App Store exclusive to EU members countries, will offer the flexibility to people with iPhones (or iPad/Mac devices) to install apps from third-party websites, reported Mark Gurman on Bloomberg.
Also, this will be geofenced around EU regions only. And the second version of the Apple App Store will be available rest of the world including the US and India. It will continue to be a high-walled garden like it is now.
There is a reason for Apple to restrict people from downloading apps directly from websites and other app stores, as there is a high risk of malware-laced apps getting in to phones. This will lead to loss of financial data and personal information.
There are several cases reported on Android ecosystem, which allows sideloading APK (Android Package Kits). Thousands of people around the world have lost money and some have fallen victim to illegal tracking as well.
However, there is negligible cases reported on Apple devices, as App Store have stringent measures to safegaurd the customer's privacy and user data.
To avoid getting entangled in legal mess, Apple may forgo any protection warranty for people who opt to side-load apps from third-party digital marketplace.
With the deadline set to March 7, Apple has less than seven weeks to adhere to the DMA ruling. Apple is expected to release the new guidelines and roll out updates to bring new Apple App Store for EU regions soon.
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