In a significant shift in its app distribution policy, Apple Inc.
What Happened: Apple is planning to roll out a web distribution feature in the EU, allowing developers to distribute their iOS apps directly from their websites. This feature will be available through a software update that is due later this spring.
Despite the new distribution method, developers will still need to comply with Apple's strict app development rules. Apps offered through web distribution must meet Apple's Notarization requirements to protect platform integrity. It can only be installed from a website domain the developer registered in App Store Connect.
Installing these apps on an iPhone in the EU won't be a straightforward process.
Users must first approve the developer installing apps in their iPhone settings. When installing an app, a system sheet displays information developers have submitted to Apple for review.
Apple will authorize developers after they meet specific criteria and commit to ongoing requirements that help protect users. Developers must be part of Apple's Developer Program, be registered in the EU, and agree to several key undertakings.
Apple is also changing its rules around how developers link to an external webpage to complete purchases for digital goods.
Developers can now design promotions, discounts, and other deals according to their preferences, making Apple's design templates optional.
Why It Matters: This move by Apple is part of a series of changes aimed at supporting alternative app stores in the EU.
In February, Apple began rolling out changes to its App Store Connect and TestFlight to support third-party app marketplaces.
This followed Apple's announcement of its "Alternative App Store" model in the EU, which, according to a Benzinga analysis, could potentially cost developers millions of dollars in yearly payments.
These changes align with the Digital Markets Act and were introduced in the iOS 17.4 update. The update brought several modifications to the App Store and apps in the EU, with major ones aimed specifically at EU users.
Price Action: Apple's stock was trading at $172.76, up 0.01% as of 10:55 a.m. EDT on Tuesday, according to Benzinga Pro.
