App Store and Browser Sideloading in the Light of Recent iOS 17.4 DMA Measurements, and a U.S. Supreme Court Decision

This afternoon, Apple announced it would allow sideloading, alternative app stores, and third-party browsers on the iPhones with release of iOS 17.4 this March. The App Store will be open to game streaming services, and developers can use alternative in-app payment options. Apple made the changes to comply with the EU’s Digital Markets Act (DMA), which requires large tech companies to follow a strict set of rules aimed at encouraging competition in the mobile app market and other areas.

The new terms of distribution of apps through the App Store that choose to use an alternative payment system will charge a 17 percent commission instead of 30 percent. The rate is 10 percent for any apps that qualify for small business rates. The fee for developers to use Apple’s payment processing system is 3 percent.

Going forward, developers could pay no commission to Apple at all in the EU, depending on how they choose to distribute their apps. Apple is making changes to the fees it charges for apps in the App Store and apps that are distributed outside of it. The new business terms allow developers to use them or stick with their current model and distribute through the App Store.

The European Commission opened an investigation into whether or not to include iMessage in the definition of a core platform service, and today’s announcement from Apple suggests it might not be included.

Sweeney will surely have more to say about Apple’s EU policies, too, and it seems like he’s just getting started. “There’s a lot more hot garbage in Apple’s announcement,” he says. “It will take more time to parse both the written and unwritten parts of this new horror show, so stay tuned.”

Epic, which operates the Epic Games Store as well as the game Fortnite, has been one of the companies calling most loudly for these kinds of changes. It fought a legal battle against Apple for its approach to the App Store.