Good? Apple 'forced' to give in: for the first time, users are allowed to install apps from third-party app stores

2024-03-14 11:43:00

Apple has always been adamant about its closed app ecosystem, and it seems to have recently conceded to some extent.

On March 12, Apple announced that iPhone users in the European Union would be able to download and install programs through third-party apps, no longer limited to the App Store.

My summary:

Apple's gradual opening up of its system has become inevitable.

Apple's opening up of third-party downloads is currently only for products in the European Union, and has no effect on products in other regions for the time being.

There is no effect on products with less than 1 million downloads for the time being.

There is a certain benefit to the head of large products.

Apple compromised with the EU, gradually open the system

Compromise to the EU, gradually open

The move is widely seen as a forced concession by Apple to the European Digital Market Act (DMA).

Why is it said that it is forced to make concessions? On March 4, the European Commission issued a statement announcing that it had fined the U.S. company Apple more than €1.8 billion for violating EU antitrust regulations.

The Digital Marketplace Act specifies that these giant companies could face fines of up to 10% of the company's global annual turnover, or up to 20% in the case of repeated breaches, in the event of a breach of the relevant requirements in the Act. These provisions provide regulators with greater punitive powers to ensure that tech companies comply with the principle of fair competition.

Apple's concession can therefore be seen as a response to the pressure of the Digital Markets Act. Realizing that non-compliance could lead to larger fines and reputational damage, they chose to let go of some of their control in order to avoid further penalties. It also shows how tech giants have had to make some adjustments in the face of regulatory pressure to adapt to the changing regulatory landscape.

The Digital Marketplace Act (DMA) is a European Commission bill targeting six large tech companies, including Google (Alphabet), Meta, Apple, Amazon, Microsoft and ByteDance. The bill aims to change the business practices of these companies in terms of data processing and ad placement, increase operational transparency, and prohibit some practices that prioritize their own services in search results. The European Commission has asked the companies to complete corrective actions to adapt and comply with the bill before it comes into effect.

The market expects that the scope and depth of the bill's impact may exceed that of the previous Apple IDFA new deal.

Specific requirements of the Digital Markets Act (DMA) include:

1, to ensure that third parties can fairly access the services of these companies.

2, These companies must provide advertisers and publishers with the data needed to evaluate the effectiveness of advertising.

3, Prohibit these companies from using exclusively collected data only for their own advertising promotions, and must similarly open up this data for use by other advertisers.

4. Prohibit these companies from sharing user data between their own services/platforms without the user's explicit consent.

In fact, it has become inevitable for Apple to gradually open up its systems.

In 2022, Apple allowed South Korean developers to use third-party payments and reduced the corresponding commission percentage to 26%; in the same year, Dutch dating apps were also allowed to open up third-party payments, corresponding to a commission percentage of 27%; earlier this year, Apple further allowed U.S. developers to use third-party payments, corresponding to a commission percentage of 27% and 12%.

These initiatives show that Apple is gradually relaxing the restrictions on third-party payments and reducing the related commission percentage.

Product and Developer Requirements

There are requirements for products and developers.

Apple has said it will provide more flexibility for app developers in the EU, including the introduction of a new program called “Web Distribution,” which will authorize developers to distribute iOS apps to EU users directly from their websites. Apple will release a related software update later this spring.

Last week Apple pushed out iOS 17.4, which allows EU users to download and install apps through third-party app stores, commonly known as 'sideloading'. However, it should be noted that developers distribute apps from their own websites, and the developers themselves must meet Apple's requirements.

According to Apple's regulations, developers who are able to distribute Apps from their own websites must be members of the Apple Developer Program for two consecutive years, and do so in a way that their apps have more than 1 million installs on iOS in the European Union, and at the same time commit to complying with Apple's requirements to disclose their own data collection policies.

Apple's concession, good for developers

Steps, good for developers

1, break the traditional shackles, developers directly through the web page to distribute applications

In the past, Apple has always taken strict control measures over the distribution of apps, only allowing apps to be distributed through the App Store. However, this new policy breaks this restriction and gives developers more autonomy. Developers can now choose to distribute apps through their own websites, which provides them with greater flexibility and control.

In addition, Apple will provide licensed developers with additional API interfaces to simplify operations such as distribution of web apps, integration of system features, and backup and restore. This will make it easier for developers to get their apps out to users and provide a better user experience.

This change is undoubtedly a major attempt by Apple in the field of application distribution. It is expected to inspire more innovative apps and bring richer and more varied choices to users. Both developers and users will benefit from this change. Developers will get more freedom and opportunities, while users will get more choices and a better app experience.

2. Design your own in-app promotions and hold the key to profitability

In addition to allowing developers to distribute apps through their websites, Apple has also provided developers with greater freedom to design in-app promotions. In the past, Apple had strict rules and audits for in-app purchases and promotions, which limited developers' profitability to a certain extent.

However, developers will now be able to design and implement in-app promotions more independently, giving them more control over their profitability. Through innovative promotions and flexible pricing strategies, developers will be able to better attract users and increase their app's cash flow.

This change also reflects Apple's emphasis on the interests of developers, giving them more autonomy while also providing a guarantee for the continued development of quality apps.

Overall, these new initiatives by Apple are undoubtedly a major boon to the developer ecosystem in the EU. By distributing apps through web pages and designing in-app promotions on their own, developers will be given unprecedented freedom and flexibility. This will not only help inspire more innovative apps, but also bring more choices to users.

At the same time, it also reflects Apple's positive response in the face of regulatory pressure, taking the initiative to make changes to optimize the developer ecosystem. It is foreseeable that under the impetus of the new regulations, the application development and distribution model in the EU region will usher in a major change, injecting new vitality into the entire mobile application industry.

This series of initiatives by Apple has undoubtedly laid a solid foundation for its long-term development in the EU market, and also provides a useful reference for the healthy development of the global developer ecosystem. This change will bring more opportunities for developers, as well as improve the user experience and the quality of applications.

Finally, it is worth mentioning that if your App product, the exposure is insufficient or the number of downloads does not reach the requirement of 1 million times, you can optimize the product through ASA, ASO and other ways to reach Apple's requirements early and get more users in different channels.