Apple Inc
What To Know: The Cupertino, California-based company announced major changes to its App Store on Thursday to comply with a European Union competition law that is set to go into effect on March 7.
A New York Times report indicates that iPhone and iPad users in Europe will soon be able to use other app stores to download applications. Banks and shopping service companies will also be able to compete with Apple, offering alternative payment methods inside their apps.
Apple will introduce a new menu to show alternative browsers besides Safari.
"The changes we're announcing today comply with the Digital Markets Act's requirements in the European Union, while helping to protect E.U. users from the unavoidable increased privacy and security threats this regulation brings," Phil Schiller, head of the App Store, reportedly said in a statement.
The EU passed the Digital Markets Act in 2022. It aims to throttle the power of the world's largest tech companies, specifically when it comes to e-commerce, social media and messaging capabilities.
The report indicates that Amazon, Meta, Alphabet, and Microsoft have all also announced changes to their policies due to the new rules in Europe.
Several companies that offer products and services via the Apple App Store are getting a lift from the news. Shares of Roblox Corp
According to the Wall Street Journal, Europe accounts for approximately 6% of Apple's App Store sales.
AAPL Price Action: Apple shares fell roughly 1% on the news. The stock was down 0.32% at $193.88 at the time of publication, according to Benzinga Pro.
