Apple to allow app installs outside native App Store in EU

Apple app installs: Apple has announced its strategy to comply with the new Digital Markets Act (DMA) in the European Union, allowing software developers to distribute their apps to EU users outside the confines of Apple's App Store. As per the DMA, companies with over 45 million monthly active users and a market capitalisation exceeding 75 billion euros ($82 billion) are obligated to make their apps compatible with rivals and enable users to choose pre-installed apps on their devices.

Starting March, developers can introduce alternative app stores on iPhones and opt out of Apple's in-app payment system, known for its commissions reaching up to 30 per cent. Nevertheless, apps must still undergo Apple's review for cybersecurity risks and fraud, and major app developers will incur a ‘core technology fee’ even if they don't utilise Apple's payment services.

Tim Sweeney, CEO of Epic Games, the creator of ‘Fortnite’ involved in an antitrust case against Apple in the US, criticised Apple's proposed changes, deeming them ‘hot garbage’ and questioning their legality under the DMA. Sweeney expressed concerns about Apple having the authority to decide which stores can compete with the App Store, potentially hindering platforms like the Epic Games Store, Microsoft, Valve, and others.

Apple released tools for developers to implement these changes, which will be reflected in an iOS operating system update in March. Companies like Epic and Spotify have long contested Apple's commissions and restrictions, prompting adjustments to Apple's App Store policies in response to legal challenges.

In the EU, developers will be able to use third-party payment processors within App Store apps at no cost. Additionally, EU iPhone users can select default web browsers and contactless payment apps, allowing contactless payments without relying on Apple Pay. However, a "core technology fee" of 50 euro cents per user account per year will apply, with exemptions for the first 1 million accounts and no charges for nonprofits, schools, or governments, according to Apple.

(With Reuters inputs)