Apple’s New App Store Rules Face Criticism and Controversy
In a groundbreaking move, Apple has announced that it will allow other companies to launch app stores on iPhones. This decision comes as a response to concerns raised by EU politicians regarding Apple’s market monopoly. While initially celebrated as a victory for businesses and consumers in the EU, Apple’s new rules and fees have faced heavy criticism, with Spotify even going so far as to call them “extortion.” Other companies, including Fortnite maker Epic Games, have also been pushing for alternative app stores on iPhones.
The EU lawmakers hoped that this rule change would encourage smaller challengers to enter the lucrative iPhone market. However, critics argue that Apple still maintains a tight grip on iPhones despite claiming to open up. Colton Adamski, a former hacker and businessman, is one of those individuals trying to launch one of the first alternative app shops in the EU. He has been running an unofficial iPhone app store for over six years, operating in the grey area of what is legal. In all regions except the EU, starting an app store is against Apple’s terms, and installing apps outside the official App Store is prohibited.
Apple justifies its average 30% commission fee by stating that it is necessary for consumer protection. While controversial, it is true that Apple has been more successful than other marketplaces in keeping malicious apps out. Colton’s unofficial app shop has garnered hundreds of thousands of downloads of unofficial apps and games. The BBC even tested his service and was able to download apps to an iPhone through a simple workaround that overrides security warnings. Colton has long wished to make his app store legitimate, and when the EU’s new laws were announced, he saw it as an exciting opportunity.
However, Colton’s excitement diminished when he and his team started reading Apple’s terms and conditions. He compares Apple’s rules to those of a gangster from The Godfather or Sopranos. While Apple allows new app shops to operate on their turf, they demand strict adherence to their rules. For instance, Apple requires new app shops to have €1m (£851,000) in the bank, and failure to maintain this reserve can result in closure. Apple claims that this requirement is necessary to weed out dodgy or scam stores. Recently, Apple stated that app developers of “good standing” for at least two years can build an app shop without the €1m requirement.
Another challenge for Colton is figuring out how to make a profit. Apple automatically bills new app stores half a euro for every download after one million, which they refer to as the Core Technology Fee. Apple argues that this fee is necessary to ensure iPhone security through regular updates. However, Colton sees it as a protection fee paid to a mob under the guise of safety. Even if someone downloads his app shop app but never uses it, he still has to pay Apple 50 cents. Apple is also applying this fee to individual apps that receive over a million downloads, causing concern among popular app makers.
Apple’s 17% fee on sales of apps sold on its App Store and elsewhere is also facing criticism. While Apple argues that 99% of hosted apps are small enough to maintain or reduce their fees, many app developers are unhappy with this arrangement. Colton points out that Android, specifically Google’s Play Store, does not impose such fees. Android phones have historically been more open, allowing other app shops like Samsung Galaxy Store and Huawei AppGallery to exist.
EU lawmakers have not yet given their opinion on Apple’s alternative app store rules, stating that they will assess them once they are put into practice. Despite the challenges and criticisms, Colton remains determined to make his app store work. He believes that this is the future of iPhones and is working hard with his team to overcome the obstacles they face.
In conclusion, Apple’s decision to allow other companies to launch app stores on iPhones has been met with both excitement and criticism. While it opens up opportunities for smaller challengers in the EU, Apple’s strict rules and fees have raised concerns among app developers. The future of alternative app stores on iPhones remains uncertain, but individuals like Colton Adamski are determined to make it work. Only time will tell how this new development will shape the app market and benefit consumers.
