Apple Inc. AAPL is reportedly planning to implement fees and restrictions for apps downloaded outside of its App Store. This comes in response to a new European law that requires Apple to allow sideloading apps on iPhones and iPads.
What Happened: According to a report by The Wall Street Journal on Tuesday, Apple’s planned policy change, which will only apply in Europe, will allow iPhone users to download apps outside of the App Store for the first time.
However, Apple’s decision to impose fees and restrictions on non-App Store downloads could potentially reignite tensions with app developers.
Apple’s response to the EU law, known as the Digital Markets Act, will enable the company to maintain oversight of apps downloaded outside the App Store, a process known as sideloading.
Apple will have the ability to review each app downloaded outside of its App Store and plans to collect fees from developers offering downloads outside of the App Store.
Why It Matters: Apple faced criticism for levying a 27% fee on all sales originating from links clicked in apps. This move, which followed a partial victory in an antitrust lawsuit brought by Epic Games, was seen by many as an attempt to maintain control over app sales and downloads.
With the implementation of the new European law, Apple’s latest move could be seen as a continuation of its efforts to maintain control over the app download process while complying with the new regulations.
However, how app developers and consumers will react to these changes remains to be seen.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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