Apple Opens Doors for Alternative App Stores on iPhones

By Joe Tidy, Cyber Correspondent

Published 3 hours ago

This week, Apple shattered long-standing barriers by allowing other companies to launch app stores on iPhones. This landmark move comes in response to the concerns raised by EU politicians about Apple’s market monopoly. The tech giant’s decision, which was initially celebrated as a victory for businesses and consumers in the EU, has captured the attention of the world.

Apple’s Response to EU’s Rule Change

EU lawmakers introduced a rule change to encourage smaller challengers to enter the lucrative iPhone market. This move compelled Apple to change its policies and embrace opening up to alternative app stores. Colton Adamski, a former hacker and businessman, aims to seize this opportunity by launching one of the first legitimate app stores in the EU.

Living in the “Grey”

Colton Adamski has been operating an unofficial iPhone app store for over six years, working within the limits of the law, or perhaps, on the fringes of it. In regions outside of the EU, launching an app store is in violation of Apple’s terms, and installing apps from unofficial sources is strictly prohibited. Although this practice, known as side-loading, is common on Android devices, Apple has always maintained that it poses security risks and apps need to go through a verification process on the official App Store.

Colton has garnered hundreds of thousands of downloads of unofficial apps and games through his service. However, for years, he has harbored the desire to establish a legitimate app store. With the new EU laws announced in January, Colton believed his time had finally come, but soon began to understand the complications.

Apple’s Stringent Terms and Conditions

Apple’s terms and conditions for launching an app store on their platform are described by Colton as reminiscent of dealing with a gangster from “The Godfather” or “The Sopranos.” Apple insists that new app shops have at least €1m (£851,000) in reserves and can be shut down if their capital falls below that amount. Although Apple’s intention behind this requirement is to eliminate scam stores, it has faced criticism for its lack of transparency.

However, Apple recently announced that app developers of “good standing” for at least two years can bypass the requirement of the €1m reserves. Colton’s next challenge lies in formulating a profitable business model as Apple charges a core technology fee of €0.5 for every download after the first million. According to Apple, this fee is necessary to ensure the security of iPhones through regular updates.

A Choice Without A Real Choice?

Some popular app makers are lamenting the 17% fee that Apple will levy on app sales on both the App Store and alternative platforms. Apple argues that this fee will have a minimal impact on the majority of small app developers, and it provides flexibility in choosing the business terms. However, critics compare this situation to a tangible protection fee paid to a mob, maintaining that Apple is offering app developers a choice that is almost impossible to refuse.

The Apple-Google Duopoly

Outside of China, Apple and Google jointly dominate the app store market, accounting for over 95% of the global market share. Google’s app store, Google Play, commands a significant presence and charges, on average, a 30% commission on app profits or subscriptions. As the EU’s Digital Markets Act remains uncritical of Apple’s alternative app store rules, Colton’s determined pursuit to make his app store a success becomes crucial for shaping the future of iPhones.

Published on 10th March 2024