Apple abdicates: there will be a huge change on your iPhone

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It was inevitable, and despite its reluctance, Apple ended up submitting. The Cupertino company has just revealed in financial documents intended for shareholders that it will be forced to authorize third-party application stores in Europe from next year.

A big change for the App Store

The Tech giant actually only applies the Digital Markets Act (DMA). This new legislation, which aims to promote healthier competition in the digital field, provides, among other things, for this obligation, from March 2024.

In this form that was able to consult TechCrunch, we can read:

Future changes could also affect what the company charges developers for access to its platforms, how it handles app distribution outside of the App Store. And (…) how and to what extent it allows developers to communicate with consumers inside the App Store regarding alternative purchasing mechanisms.

In summary, Apple is therefore possibly expecting a reduction in sales volume, which would have a downward impact on the commissions it receives on transactions. From then on: “The company's business, operating results and financial position could be adversely affected.” We understand better why this prospect hardly enchanted the Cupertino company.

As for the consequences for the consumer, they are currently difficult to assess, but users will probably have more choice in the future. We also remember that this monopoly on application sales generated numerous conflicts between Apple and developers. The main ones being Epic Games and Spotify.

However, Apple remains a very solid company, and this measure should not impact it too intensely. In any case, this is the opinion of analysts at the investment bank Morgan Stanley. Quoted by our colleagues, they believe that the Apple brand should hold up well in particular“because of the security, centralization and convenience of the App Store (…) “. For the moment, the Tech giant has not yet officially reacted to this announcement.

What you should remember:

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Under the Digital Markets Act, Apple is required to authorize third-party stores on iOS

The Cupertino company has long opposed this initiative. It ended up accepting it, as financial documents confirm

It's a major change, but Apple is very well equipped to withstand this shock

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