Report: Apple is Considering Fees and Restrictions for Sideloading Apps in the EU

If the Digital Markets Act will soon force Apple to allow EU users to download apps from other sources than the App Store, the Wall Street Journal is reporting today that sideloading apps on iOS may come with new fees and restrictions. For many years, Apple has used the security argument to maintain its monopoly on the distribution of apps and iOS, but the company has also been trying to protect what remains one of its major source of revenue.

“Apple’s approach to the EU law will help ensure the company maintains close oversight of apps downloaded outside the App Store,” the Wall Street Journal report reads. “The company will give itself the ability to review each app downloaded outside of its App Store. Apple also plans to collect fees from developers that offer downloads outside of the App Store, said people familiar with the company’s plans.”

Obviously, these plans are guaranteed to piss off developers, but maybe that had to be expected from Apple. However, as the Cupertino giant has yet to detail what it’s planning to do to make its iOS and App Store platforms compliant with the EU’s DMA, the WSJ noted that these plans could still change. However, the DMA will come into effect on March 6, 2024, and the WSJ believes that Apple has been working on its response to the new EU rules for a year.

The company also reportedly met with the EU Commission and other tech companies to discuss the DMA in recent months, but the WSJ reports that Apple hasn’t revealed its final plans yet. “Once it does, the commission will review the full package to look at whether it will make the market more open and contestable, and whether the company’s plans meet all the individual provisions of the law,” the WSJ wrote, citing a person familiar with the matter.

The EU’s Digital Markets Act aims to break up walled gardens and prevent Big Tech companies to restrict competition and favor their own services. For Apple, this means allowing users to download apps from other sources. But it also means allowing developers to implement their own payment systems in their apps and get access to the iPhone’s NFC technology for tap-to-pay payments. The new legislation will also impact other “gatekeepers” such as Microsoft, Google, and Meta, which have already detailed upcoming changes to comply with the DMA on March 6.

Earlier today, Spotify also revealed what EU users can expect from its app when the DMA comes into effect in March. Spotify will be able to communicate directly with customers via its iOS app, promote its subscriptions and special offers, and allow iOS users to subscribe to Spotify Premium or purchase audiobooks with their credit card, avoiding the 30% cut Apple takes on in-app purchases.

Spotify also said that EU users will be able to install its apps directly from its website. Meta is reportedly planning to go even further by distributing mobile apps via Facebook ads in Europe.