# Apple Faces Significant App Store Overhaul Due to EU Regulations
Written on
Chapter 1: Introduction to Apple's Regulatory Challenges
Apple may have thought it weathered the worst of the European Union's legislative pressures, especially after conceding to changes regarding charging ports. Starting December 28, 2024, all mobile devices, including phones, tablets, and cameras, must utilize a USB-C port for wired charging. This seemingly minor adjustment has profound implications for the tech giant based in Cupertino.
As I have mentioned in previous discussions, this change requires Apple to procure millions of USB-C ports for its iPhones, in addition to altering the charging ports on its other products that currently rely on the proprietary lightning connector, such as the Magic Keyboard, Magic Mouse, and AirPods.
Section 1.1: Apple’s Strategic Response
Despite keeping their plans under wraps, it is clear that significant disruptions are on the horizon. Apple could opt to replace the lightning connector with MagSafe, potentially defying EU mandates. However, as the months progress, it will become evident how Apple navigates these regulatory challenges.
Subsection 1.1.1: The Push for Openness
With increased pressure from not only the EU but also global governments, Apple is likely facing the necessity to modify its App Store and other vital applications. Although no formal announcement has been made, it's anticipated that the company will have to comply with the EU's Digital Markets Act, which mandates that major gatekeeping firms must "open up their services and platforms."
The act targets companies with substantial user bases, requiring them to make their services accessible to other developers and platforms. This includes browsers, messaging services, and social media outlets that reach at least 45 million monthly users within the EU.
Chapter 2: Implications of the Digital Markets Act
The first video titled "iOS 18 Beta - 120+ New Features & Changes!" explores how the upcoming iOS version will adapt to these regulatory changes, focusing on new features and functionalities Apple plans to introduce.
As the EU works to finalize its definition of gatekeepers, it is likely that Apple will fall under this classification. Non-compliance could lead to severe penalties, amounting to 20% of a company's global revenue, which for Apple could mean fines reaching up to $80 billion. Changes must be implemented by March 6, 2024.
Section 2.1: Expected Changes to Apple Services
The ramifications of these regulations extend beyond just the App Store. Potential adjustments could also affect FaceTime, Messages, and Siri. Reports indicate that Apple is allocating significant resources to prepare for these changes, with key figures in engineering already engaged in the process.
The second video titled "Apple Announces MAJOR App Store Changes in iOS 17.4" details the substantial updates Apple is expected to make in response to these new laws, including the introduction of alternative app stores and payment systems.
Section 2.2: The Future of App Distribution
The introduction of sideloading will allow users to download apps from sources outside of the App Store, breaking Apple's long-standing policy that required developers to pay a commission of 15%-30%. Apple has justified this model as essential for maintaining user privacy and security.
In addition, Apple will need to facilitate third-party payment systems, allowing for competition with Apple Pay. Furthermore, the company will no longer be able to prioritize its own applications, such as Apple Music and Apple Arcade, within its App Store.
Section 2.3: Messaging Services and Interoperability
Discussions about interoperability have also arisen, particularly regarding the Messages app. The EU's regulations aim to ensure that messaging platforms can communicate with one another. Although Apple has not committed to adopting the RCS standard favored by Google, it remains a possibility.
Wrapping Up: The Road Ahead for Apple
As I write this on the day iOS 16.2 has been released with enhanced data protection features, it's evident that Apple is at a crossroads. With its immense global influence, the company has attracted the attention of international lawmakers. The landscape for Apple seems set for a significant transformation as it adapts to these new regulatory requirements.
Getting Involved
Interested in receiving my weekly video newsletter? It's free and easy to subscribe. Just leave your details, and every Sunday, I’ll send you a recap of the week’s tech news. Your support by joining Medium will ensure you get my articles as soon as they are published.