iOS 17.4 Will Open Up the App Store, Other iPhone Features for EU Users in March

It’s finally happening: iOS 17.4, which will be released in March, will finally open up the iOS walled garden, but only for users in Europe. Today, Apple detailed all the changes that it’s making to iOS, the App Store, and Safari in Europe to ensure compliance with the EU’s Digital Markets Act, and the big change is that Apple will finally allow developers to distribute their apps outside of the App Store.

Apple will also allow developers to use other payment systems and create web browsers that use other engines than Apple’s WebKit. The company will also allow cloud gaming apps on iOS, which means that services like Xbox Cloud Gaming or Nvidia GeForce Now will no longer be exclusively available via the web on iOS devices.

“The changes include more than 600 new APIs, expanded app analytics, functionality for alternative browser engines, and options for processing app payments and distributing iOS apps. Across every change, Apple is introducing new safeguards that reduce — but don’t eliminate — new risks the DMA poses to EU users,” Apple said in a press release today.

Developers can start testing the new options for app distribution and payment processing today with the first iOS 17.4 developer beta. Apple also detailed today the safeguards that it will introduce to reduce privacy and security risks for iOS users in Europe. The biggest change is what Apple calls “notarization” for iOS apps, which will combine automated checks and human reviews. Notarization will apply to all iOS apps, even those distributed outside of the App Store.

Apple also said today that App Tracking Transparency, which currently asks a user’s permission before a developer can track their data across apps or websites will continue to work with apps distributed outside of the App Store. iOS 17.4 will also bring additional malware protection to block malicious apps downloaded from other sources:

Here are the biggest changes for EU users with iOS 17.4 in March:

Alternative App Stores: Companies will be able to create their own App Stores on iOS, and developers will have new APIs and tools to make their apps available on these alternative marketplaces. EU users will also be able to choose an alternative app marketplace as their default

Alternative browser engines: Third-party web browsers will now be able to use other browser engines than Apple’s Safari, and that includes Chromium or Mozilla’s Gecko engine.

New choice screen in Safari: When EU users will open Safari for the first time, they will see a ballot screen with a choice of default browsers.

Alternative payment processing for App Store apps: Developers can now choose other payment platforms for processing payments for digital goods and services.

Third-party contactless payments: Apple is opening the iPhone’s NFC chip to third-party tap-to-pay payment systems. EU users will also be able to select a third-party contactless payment app as their default.

New business terms for apps: Developers who want to distribute their apps in other stores or use alternative payment systems will need to adopt Apple’s new business terms for EU apps. For apps still distributed on the App Store, Apple will reduce its commission from 30% to 17% on app sales, and to just 10% for the vast majority of developers and subscriptions following their first year. Apple is also introducing a 3% fee for payments that go through the App Store, as well as a €0.50 core technology fee for each first annual app install per year over a 1 million threshold. This fee will apply to apps distributed via the App Store as well as alternative marketplaces.

“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. Our priority remains creating the best, most secure possible experience for our users in the EU and around the world,” said Phil Schiller, Apple Fellow.

Overall, iOS 17.4 is going to profoundly change the way Apple has been controlling app distribution on the iPhone since the launch of the App Store on the iPhone 3G back in 2008. The App Store still remains a major source of revenue for Apple, but it’s a good thing that EU regulators finally forced the company to loosen its grip over iOS. However, it’s unfortunate that these changes that will really benefit consumers will only be available to users in the 27 EU countries beginning in March 2024.