Apple is preparing to make an important change to its software policy by allowing third-party stores to be installed on iPhones. The change can be implemented in March 2024 on devices located in the European Union.
These adjustments are necessary for Apple to comply with the Digital Markets Law (DMA), and the company itself recognizes in a 10-K document that the change should impact its revenue.
This is because allowing users to use third-party stores should result in many people ending up buying applications or subscribing to “competition” services.
These upcoming changes could also affect what the company charges developers for access to its platforms and how it manages app distribution on the App Store. This could reduce the volume of sales and the commission that the company earns on these sales would also decrease — says an excerpt from the document.
For a long time, Apple tried to argue against the DMA law, but the company was “outvoted” and now Cupertino executives believe that change is inevitable.
The company expects to make more business changes in the future, including as a result of legislative initiatives that impact the App Store — the company concludes in the document.
For now, Apple is not commenting on the matter. Still, analysts at Morgan Stanley say this new wording of the 10-K form indicates that the arrival of third-party stores is a likely thing to happen.
Apple is well positioned to compete if these changes happen. Due to the security, centralization and convenience of the App Store, many users should continue to choose the company’s store — says the investment bank.
(updated on November 9, 2023, at 16:14)