We have recently reported that Apple is working on iOS 17.4 for the iPhone, which will bring one of the most significant changes to the App Store. The company is approaching the deadline imposed by the EU to allow app sideloading on the iPhone. However, little to no details are available for how the company would implement the required changes. A new report suggests that app sideloading on the iPhone will face various restrictions from Apple and a fee.
Apple to impose a fee on app sideloading and external payment system to encourage users to use the official App Store
Earlier this month, it was reported that the company was planning to break the App Store into two. One part of the App Store would allow users to download apps from within the App Store, and the other would enable app sideloading from external sources. According to the EU's requirements under the Digital Markets Act, Apple will allow users to download apps outside the App Store. Additionally, the company is also required to accept external payment methods.
As mentioned earlier, it is unclear how the company plans to go about app sideloading, as the decision has various externalities. A new report from The Wall Street Journal details that app sideloading on the iPhone will still adhere to several restrictions imposed by Apple and a fee, encouraging users to download apps from the App Store. The decision makes a lot of sense as the company has never been keen to allow users to download apps outside the App Store.
However, this is about to change as the company must comply with the EU regulations under the Digital Markets Act. The publication states that sources familiar with the company's plan detail that Apple is drawing guidelines for downloading and installing apps outside the App Store. Additionally, a fee would also be charged to users. We are unfamiliar with whether Apple opts for a per-app fee or a subscription-based model to allow app sideloading on the iPhone.
Currently, Apple takes a 27 percent cut from in-app purchases made via alternative payment systems in the Netherlands. Henceforth, we can expect a similar pricing model for alternative payment methods in the EU. Note that the company's plans could differ from the details in the new report. Nonetheless, the price cut would be more or less similar to what the company currently charges in the App Store.
Despite Apple's decision to comply with EU regulations, app sideloading poses various threats to user privacy and security. The company could impose additional guidelines for apps that can be downloaded from outside the App Store. How the company will design a platform for external apps and a third-party payment system remains to be seen. The company has until March 6 to make the required changes, and we suspect Apple will implement the changes with the release of iOS 17.4.
About the author: Ali Salman is a technology reporter for Wccftech mobile section with a specialized focus on Apple and the intellectual property that drives mobile innovation. He has cultivated a unique expertise in analyzing and deconstructing complex technology patents, translating dense legal and technical documents into clear, insightful reports on future products.
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