Apple's Compliance with the EU's Digital Markets Act

Apple is finally allowing third-party app stores on iPad, a decision driven by the European Union's Digital Markets Act (DMA). This major change, slated to occur with the upcoming release of iPadOS 18 on September 16th, aims to increase competition within the app market and give users more control over their devices.

The EU's DMA and its Impact on Apple

The DMA, designed to promote fair competition and prevent anti-competitive practices by large tech companies, has placed pressure on Apple to loosen its grip on the app distribution market. Apple, initially designated as a "gatekeeper" for its iOS, App Store, and Safari browser, later received a designation for iPadOS as well, forcing it to make significant changes.

• The EU's designation of iPadOS as a "gatekeeper" under the DMA was based on the recognition that it exerts significant control over app distribution on iPads, particularly for business users.
• As a result, Apple was required to comply with the DMA's provisions for gatekeepers, including allowing users to install third-party app stores.

Apple's Response to the EU's DMA

Responding to the EU's requirements, Apple has committed to allowing users to install third-party app stores on iPad, starting with iPadOS 18. This decision paves the way for alternative app marketplaces to enter the iPad ecosystem, offering users a wider selection of apps and potential cost savings.

Alternative App Stores for iPad in the EU

With Apple's compliance, several alternative app stores have emerged in the EU, catering to users seeking apps beyond those available on Apple's App Store. These app stores provide access to a broader range of apps, including emulators, virtual machines, and other software that might not be available through the App Store.

• The AltStore PAL is one such example, offering users a platform to download apps like Delta, UTM, and iTorrent, which are not readily available on Apple's App Store.
• Epic Games has also launched its own alternative app store, allowing users to download and play games like Fortnite, Rocket League Sideswipe, and Fall Guys on their iPhones and potentially on iPads soon.

Apple's Approach to Security and Business Terms

While opening up the iPad app market to third-party app stores, Apple has implemented measures to maintain a level of security. Apps must undergo notarization by Apple for security purposes before being released on alternative app stores.

• Developers also have to sign new business terms with Apple and pay a "Core Technology Fee" above a certain threshold.
• These measures reflect Apple's ongoing efforts to balance increased competition with maintaining a secure and controlled app ecosystem.

Web Browser Changes in the EU

The EU's DMA also requires Apple to allow users to choose their default web browser engine, a move that could potentially lead to greater competition and innovation in the browser market. While some third-party browsers like Chrome and Firefox are already available on iPad, they currently utilize Apple's WebKit engine to load web content.

• The DMA provides an opportunity for web browser developers to release their own browsers for the iPad with alternative browser engines.
• However, none of the major tech companies have yet to take advantage of the DMA to release an EU-specific browser app that leverages a different engine.

Conclusion: Apple's Adapting to the EU's DMA

Apple's decision to allow third-party app stores on iPad is a significant step towards complying with the EU's Digital Markets Act. This change represents a shift in Apple's approach to app distribution, potentially opening up the iPad ecosystem to more competition and user choice. The impact of the DMA on Apple's app ecosystem will continue to evolve, and it will be interesting to observe how Apple navigates this new landscape.