App store avalanche forecast as Apple bows to EU demands
As the maker of the iPhone gets ready to let other parties to use its devices in the European Union, Apple's competitors are pitching themselves as the go-to replacement for its monopolistic App Store. The Digital Markets Act (DMA) of the bloc would compel tech giants Apple and Google to make room on their respective iOS and Android devices for third-party app stores.
The DMA will make it simpler for third-party options to access iPhones and Android devices over the course of the next two years when it goes into effect in phases. As the maker of the iPhone gets ready to let other parties to use its devices in the European Union, Apple's competitors are pitching themselves as the go-to replacement for its monopolistic App Store.
The Digital Markets Act (DMA) of the bloc would compel tech giants Apple and Google to make room on their respective iOS and Android devices for third-party app stores. The DMA will make it simpler for third-party options to access iPhones and Android devices over the course of the next two years when it goes into effect in phases.
And once the law's provisions take effect, rivals like larger corporations like Amazon and Microsoft as well as smaller startups may try to entice customers and app developers away from Apple and Google.
The CMO of market research company CSS Insights, Ben Wood, predicted 'an avalanche of app shops' in the near future. According to Wood, who spoke to Reuters, “there's an emerging 'coalition of the willing,' and all of them have a vested interest in not having to continue paying what they regard as a tax to Apple.” Requests for comments from Apple and Google were not answered.
Android users may currently 'sideload,' or install programmes from alternate sources, but doing so frequently requires them to disable certain security settings. Industry titans like Twitter owner Elon Musk and Spotify CEO Daniel Ek, both of whom have criticised the company's 30% tax on purchases made through its App Store, would benefit from Apple's ostensible concessions on sideloading.
Rivals are attempting to lure disgruntled developers to their stores by offering cheaper commission rates and the possibility of exclusive contracts with well-known apps.
Paulo Trezentos, CEO of Portugal's Aptoide, which takes a 15% to 25% share of in-app sales, stated that competition is a smart approach to improve services. Agreements for exclusive content may increase rivalry in app stores in the same way that Netflix's 'streaming wars' with rivals like Disney+ and Amazon Prime have done. Trezentos added as he spoke: “HBO lacks certain types of material that Netflix does. That is how app stores can be.” When the DMA is implemented, Paddle, a payments processor for software providers, plans to build its own version of the App Store in Europe.