What are the benefits for customers and developers by opening up iOS?

• While EU’s DMA is in effect, the actual changes Apple might have to make could take time as the EU works through specific implementations, challenges, and possible appeals from Apple.
• EU could push Apple to allow more flexibility in choosing default apps.
• Opening up iOS does introduce certain security risks, such as increased exposure to malware and less control over app permissions.

The European Union (EU) has taken steps that could potentially open up Apple’s iOS in significant ways through its regulatory frameworks, particularly via the Digital Markets Act (DMA).

The DMA, which came into force in November 2022, aims to prevent large tech companies—referred to as “gatekeepers”—from abusing their dominant positions in the market. Apple, with its iOS ecosystem, is considered one of these gatekeepers.

One of the most significant potential changes is forcing Apple to allow third-party app stores and sideloading (installing apps from sources other than the official App Store).

This would open iOS to more competition and reduce Apple’s control over app distribution, which could drastically change the way users’ access and install apps on iPhones and iPads.

The EU could push Apple to allow more flexibility in choosing default apps. Currently, iOS users are limited in selecting apps like browsers or email clients as defaults, with Apple favoring its own apps like Safari and Mail.

While the DMA is in effect, the actual changes Apple might have to make could take time as the EU works through specific implementations, challenges, and possible appeals from Apple.

EU’s Digital Markets Act (DMA) can bring significant benefits to both customers and developers and here are they?

Benefits for customers:

1. More app choices: With the ability to sideload apps or use third-party app stores, customers would have access to apps that are not available or allowed in Apple’s App Store. This increases the variety and availability of apps, including those with niche functionalities that Apple might restrict for policy or business reasons.
2. Lower costs: Developers who distribute their apps outside the App Store can avoid Apple’s 15 per cent-30 per cent commission on in-app purchases and subscriptions. These savings can be passed on to customers in the form of lower prices for apps and services.
   Competing app stores may offer more competitive pricing, discounts, or exclusive content, giving users more options.
3. Greater Customisation: Customers could benefit from more flexibility in choosing default apps for functions like messaging, web browsing, and email. This would give users more control over their device’s software and functionality, much like what is available on Android.
4. Improved app experience: By opening up more APIs and system integration options, developers could create more powerful, innovative, and seamless apps that better integrate with iOS features (e.g., deeper integration with Siri, more advanced widgets, or alternatives to Apple’s apps with greater functionality).
5. Better interoperability: Cross-platform messaging and other services could become a reality if Apple is required to open its messaging systems (like iMessage) to work with other platforms, enhancing convenience for customers who communicate with users across different operating systems.
6. Less vendor lock-in: By increasing flexibility and reducing restrictions, Apple users would no longer be as tightly locked into the Apple ecosystem. This would allow for easier switching between devices from different manufacturers without losing access to key apps or services.

Benefits for developers:

1. More freedom in distribution: Developers could distribute their apps through third-party app stores or directly to customers without relying on Apple’s App Store. This would eliminate the need to comply with Apple’s stringent review guidelines, which often limit certain types of apps (like gaming, crypto, or adult content apps).
2. Avoidance of commission fees: By bypassing the App Store, developers could avoid Apple’s 15 per cent-30 per cent commission on sales and in-app purchases. This allows developers to keep more of their revenue, which could help smaller developers or startups grow more quickly.
3. Faster app updates and innovation: Without needing to go through Apple’s sometimes lengthy approval process, developers could release updates faster. This allows for quicker bug fixes, feature updates, and security patches, leading to a better overall user experience.
4. Access to more iOS features: If iOS opens up more APIs and system features, developers could create apps with deeper system integration, allowing them to compete more effectively with Apple’s own apps. This could enable innovative features in areas like messaging, payments, or multimedia that are currently reserved for Apple’s apps.
5. Level playing field: Apple’s App Store policies often give preferential treatment to its own apps (e.g., pre-installation, default app settings, etc.). Opening iOS levels the playing field, allowing third-party apps to compete more fairly in terms of visibility, functionality, and access to key features.
6. Expanded market access: By allowing third-party app stores, developers might reach new audiences and market segments. Specialized or regional app stores could provide better access to certain geographic markets or communities with specific interests.

Both groups could benefit from a more open and diverse iOS ecosystem that fosters competition and innovation.

However, opening up iOS does introduce certain security risks, such as increased exposure to malware and less control over app permissions. Many of these risks can be mitigated through strong security policies, user education, and technical controls like sandboxing and app signing.

A well-balanced approach could give users and developers more freedom without compromising on the security and privacy that iOS is known for.

On Android, which allows sideloading and third-party app stores, Google Play Protect scans apps for malware, even those installed outside the Play Store.

Apple could implement a similar security framework for iOS, ensuring that sideloaded apps are scanned for malicious content before they are installed.

Apple could follow a controlled openness strategy, where users have more freedom to install apps from different sources, but with security safeguards in place.