Apple has unveiled significant adjustments to iOS, Safari and the App Store as it works to adhere to new European Union regulations around app distribution and in-app payments. The changes, which focus on giving developers more flexibility while still prioritizing user privacy and security, represent one of the company’s biggest policy shifts to date.
According to an announcement from Apple, the tweaks are being implemented to conform with requirements under the EU’s new Digital Markets Act (DMA). Passed in 2023, the legislation aims to create a more level playing field for app developers and curb the dominance of major technology gatekeepers.
Under the DMA’s designation of iOS, Safari and the App Store as “core platform services,” Apple will now allow developers to offer their iOS apps through alternative app marketplaces and use third-party payment systems. Additional updates give developers more choice in how they process payments both within and outside of apps.
Protections Added for Users
While providing developers with expanded freedoms, Apple is also introducing new safeguards and disclosures focused on user privacy and security. According to Phil Schiller, Apple Fellow, “The changes we’re announcing today comply with the Digital Markets Act’s requirements in the European Union, while helping to protect EU users from the unavoidable increased privacy and security threats this regulation brings.”
One such protection is “Notarization” for all apps distributed on iOS, regardless of source. This involves both automated checks and human review to verify platform integrity. Apple will also require authorization and ongoing commitments from alternative app marketplaces.
Additional screening aims to block malware, with apps prevented from launching if malicious code is detected post-installation. Apple acknowledges, however, that threats like illicit content, scams and privacy risks will be harder to mitigate under the new rules.
Changes to App Distribution and Payments
Concretely, the changes coming to iOS in Europe include:
- APIs and tools enabling distribution through non-App Store marketplaces
- A framework for third-party marketplaces to install and manage updates
- Interfaces for alternative browser engines in apps with embedded browsers
- Contactless payment APIs for banking/wallet apps throughout Europe
On the App Store, developers will gain the ability to offer third-party payment options either directly in apps or via external links. App Store listings will also signal when alternative payment systems are being used.
New Business Terms for EU Developers
Under a separate but related adjustment, Apple unveiled revised fee structures for EU developers. Those opting to use the flexibilities around non-App Store distribution and payments will see a reduced 15% standard commission (versus 30% previously).
A 3% fee will apply to any continuing use of Apple’s in-app purchase system. Additionally, developers earning over €1 million annually via distribution outside the App Store will pay a €0.5 per-download “Core Technology Fee.”
According to Apple, the new terms are “necessary to support the DMA’s requirements for alternative distribution and payment processing.” They aim to fairly compensate Apple for the value it provides via features like discovery, security and platform maintenance.
Impact on Developers and Users Remains Unclear
Reaction to the changes from developers and analysts has been mixed, with many waiting to assess the tangible effects. Anthropic, an AI safety startup, told TechCrunch the moves are “a step in the right direction,” while acknowledging adjustment challenges.
For users, the impact is also difficult to foresee. As Dieter Bohn of The Verge notes, “[Apple] is trying to balance new rules it didn’t choose with its existing promises around privacy, security and control.” Only time will tell how everything plays out in practice.
In summarizing the complex adjustments, Apple remains committed to delivering “the best, most secure experience possible for EU users.” But navigating the tradeoffs between regulations, economics and end-user wellbeing presents an ongoing challenge for the tech giant.
