Apple to allow downloads outside App Store in EU, with new fees
By Stephen Nellis
(Reuters) — Apple (NASDAQ:AAPL) on Thursday outlined its plans to allow software developers to distribute their apps to users in the European Union outside of Apple's own App Store.
The move is in response to a new EU law called the Digital Markets Act, which requires companies with more than 45 million monthly active users and a 75 billion-euros ($82 billion) market capitalization to, among other things, make their apps compatible with those of rivals and let users decide which apps to pre-install on their devices.
Starting in March, developers will be able to offer alternative app stores on iPhones and opt out of using Apple's in-app payment system, which charges commissions of up to 30%. However, developers will still have to submit apps to Apple for review for cybersecurity risks and obvious fraud, and Apple will charge a «core technology fee» to major app developers even if they do not use any of Apple's payment services.
Apple released tools on Thursday for developers to begin making changes to their business arrangements, and consumers will see the changes with an update to the iOS operating system in March.
Firms such as Spotify (NYSE:SPOT) Technology and «Fortnite» creator Epic Games have for years said that Apple's commissions and restrictions impeded their businesses. But in recent years, Apple's once-monolithic App Store approach has become a patchwork of rules as the tech company responds to legal and regulatory challenge.
For example, earlier this month, Apple said it would alter rules around linking out of apps to third-party websites for payment in the United States to comply with a ruling in an antitrust suit brought by Epic. But Apple also said it will charge a 27% commission on
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