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This article originally appeared on Business Insider.
Apple has argued for years that it needs control over the App Store and other key parts of the iPhone ecosystem, despite increasing complaints from regulators.
But this is the first time that many of those elements have been reluctantly made public due to regulatory pressure.
Important to know: The changes Apple announced Thursday only apply to Europe due to new laws that take effect in March.
But they’re important because Apple has spent a lot of time and effort avoiding many of these changes.
Some of the big ones are:
Apple will allow developers to create and distribute apps without using the company’s App Store.
Apple’s App Store will now take up to a 17% cut of payments for apps distributed on the App Store, plus an additional 3% fee. This is down from the 30% maximum fee that has been maintained for many years.
Developers using non-Apple stores don’t have to pay anything to Apple, except for apps that are downloaded more than 1 million times a year. These apps, like apps distributed through Apple’s App Store, pay a fee of €0.50 for every download over 1 million.
Other important changes include the ability for users to set a default web browser other than Apple’s Safari browser. Developers can also take advantage of Apple’s Near Field Communication technology, allowing users to make contactless payments with their mobile phones without using Apple’s Apple Pay or Apple Wallet systems.
Apple makes clear in the language announcing the changes that it believes many of these are bad ideas.
“New options for processing payments and downloading apps on iOS open new avenues for malware, scams and scams, illegal and harmful content, and other privacy and security threats,” the company said in a statement.
It also says it tries to help its customers by providing some kind of buffer between them and external developers. This includes a system to “notarize” all apps, whether they come from the Apple Store or elsewhere, “focused on platform integrity and user protection.”
And how this will play out in practice remains to be determined. Part of the reason is that Apple is still appealing some implementations of the new rules. One reason for this is that both consumers and developers are forced to make choices.
Example: Users who want to purchase something through a store other than Apple’s App Store will see this screen, making it clear that if they give their credit card information to someone other than Apple, Apple can’t do it. Become. Please help them if something bad happens.
Apple App Store The version of the screen that users see when they make a payment without using Apple’s App Store. Apple via BI
If you’ve used an iPhone app in the past few years, you’ve probably seen a similar screen that says the app developer wants to track your movements on the web. This screen requires you to actively say you want it.
Not surprisingly, most people have do not have That’s what most apps choose. And that change has rattled the entire digital advertising industry, including Apple’s rival Meta. In the face of such warnings, it may not be surprising that many iPhone users end up sticking with Apple’s system instead of using external developer stores.
And developers with hugely popular apps will need to understand what Apple’s new pricing structure means for them.
What to watch: Fortnite maker Epic Games, which directly challenged Apple’s App Store rules and was banned from the platform as a result, says new regulations will bring Fortnite back to Apple phones in Europe in 2024. It is said that this will happen. But the company says it will. “We will continue to argue to courts and regulators that Apple is breaking the law.”
Will something like this happen anywhere outside of the US or Europe? No, Apple says, because “this is not the most secure system for our users.” Translation: To do this elsewhere would require new laws.
It may happen in the future. Meanwhile, Thursday’s news is a milestone for Apple and regulators. It’s proof that, if pushed hard enough, one of the world’s most influential companies can change something it never wanted to change.
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