Apple is rumoured to make changes to the App Store to comply with European Union rules. According to reports, the technology giant is preparing to split the App Store into "two" in the coming weeks.
As it will be remembered, the European Union adopted the Digital Market Act (DMA) last year. This made it difficult for the big technology companies to become monopolies and required them to become more pragmatic. The EU started a countdown for Apple, Google, Meta and more to comply with the rules and gave them until 6 March 2024. In the case of Apple and the App Store, there was a requirement to install applications from third-party markets. Now it is rumoured that Apple will allow external application uploads to the App Store. However, this will only be exclusive to the EU.
App Store is divided into two
Bloomberg's Mark Gurman reports that Apple is preparing to split its App Store in two in the coming weeks ahead of European Union requirements that will force the region to allow outside installation of apps. Apple is apparently planning to make adjustments to comply with the new legal requirements, including separating the App Store in the EU from the rest of the world. This will therefore split the App Store into "EU and the rest of the world".
Last week, Apple CEO Tim Cook met with European Union antitrust chief Margrethe Vestager at Apple Park. Vestager reminded Cook of Apple's obligation under the DMA to allow users to use third-party app stores and install apps from outside. Apple will also be obliged to allow developers to promote their products outside the App Store and use third-party payment systems.
Penalties are very heavy
The DMA is expected to force Apple to make a number of significant changes to the way the App Store, FaceTime and Siri work in Europe. In fact, third-party marketplaces and outsourcing app installation is not a simple request, but a requirement for Apple. Companies that fall under the DMA but do not meet the requirements could face huge fines. The Commission can impose fines of up to 10 per cent of a company's total worldwide turnover, or up to 20 per cent for repeat offenders. And it's not just about fines. The EU Commission also has the ability to impose structural remedies, such as forcing companies to sell the relevant business division.
