Apple is opening its App Store to competitors in the EU, allowing third-party app stores and alternative payment systems. Announced in June 26 2025, the move is driven by the EU’s Digital Markets Act which aims to avoid escalating fines and foster competition. It offers developers more freedom and potentially lower costs, while creating new opportunities for payment providers and app marketplaces. The changes mark a significant shift for the mobile ecosystem, with global implications for digital markets. Here Dario Betti shares his view.
Apple has announced sweeping changes to its App Store policies on June 26 2025 ( for the European Union only). The move would allow developers to distribute iOS apps outside of the official App Store for the first time. The announcement comes as the $3 trillion tech giant seeks to avoid escalating fines from the European Commission for breaching the Digital Markets Act (DMA), the EU’s flagship legislation aimed at curbing the dominance of Big Tech platforms.
What Will Change in the App Store?
Apple’s latest concessions, effective across the EU, are designed to comply with the DMA’s requirements for fair competition and open digital markets. The key changes include:
Third-Party App Stores: For the first time, developers will be able to offer iOS apps through alternative app marketplaces, not just Apple’s App Store. This means users in the EU can download and install apps from competing stores, increasing consumer choice and reducing Apple’s control over app distribution.
Alternative Payment Systems: Developers can now direct users to external payment options for in-app purchases, bypassing Apple’s own payment system and its standard commission fees. This is expected to lower costs for developers and potentially for consumers as well.
Promotion of External Offers: Developers will be allowed to inform users—both inside and outside their apps—about alternative purchasing options, discounts, or subscriptions available outside the App Store, something that was previously restricted by Apple’s anti-steering rules.
App Review and Security: While Apple will still require apps to meet certain security and privacy standards, the company has committed to streamlining the review process for apps distributed via third-party stores. However, Apple has expressed concerns about the potential risks to user privacy and device security, and will implement new safeguards and disclosures for apps installed outside its ecosystem.
Reduced Commissions and New Fee Structure: Apple is introducing a new fee structure for developers who choose to use alternative app stores or payment systems. While the details are still being finalized, the company has indicated that it will reduce or eliminate some of its traditional commission fees for transactions that do not use Apple’s payment infrastructure.
Regulatory Backdrop
The European Commission fined Apple €500 million earlier this year, citing non-compliance with the DMA’s requirements for fair competition and open markets (see our previous article) The DMA, which came into force in March 2024, obliges “gatekeeper” companies to allow alternative app stores and payment systems, and to make it easier for developers to promote their offerings outside of proprietary platforms.
Apple’s new measures, announced on the deadline for compliance, will enable developers in the EU to offer iOS apps through third-party marketplaces and to direct users to external payment options. The company has been in negotiations with Brussels for months, arguing that the Commission’s requirements have shifted during the process. Despite implementing the changes, Apple has stated its intention to appeal, maintaining that the Commission’s demands go beyond what is necessary for compliance.
Industry and Regulatory Reactions
As reported by the Financial Times and Reuters, a spokesperson for the European Commission confirmed that the new business terms will be assessed for compliance with the DMA, emphasizing the importance of consulting market operators and stakeholders before determining next steps. The Commission has warned that financial penalties could escalate to as much as 5% of Apple’s average daily global revenue if the company is found to be in continued breach.
The changes come at a sensitive time in transatlantic relations, as Brussels and Washington approach a July 9 deadline to finalize a new trade agreement. EU leaders have made it clear that the bloc’s digital rules will not be altered as part of these negotiations, despite pressure from US officials Reuters.
Implications for the Mobile Ecosystem
Apple’s decision to open the App Store to competition in the EU is a watershed moment for the mobile ecosystem, with far-reaching consequences for developers, payment providers, device manufacturers, and consumers.
- For Developers: increased competition on app retail
The most immediate impact is the increased freedom for app developers. They can now distribute apps through alternative marketplaces and use third-party payment systems, potentially reducing costs and increasing their share of revenue. This could foster greater innovation, as smaller developers and startups gain more equitable access to iOS users without being constrained by Apple’s previous commission structure or app review policies. Developers will also be able to communicate more directly with their customers about alternative offers, subscriptions, and payment options, which may drive new business models and customer engagement strategies.
- For Competing App Stores and Platforms: new opportunities are opening
The DMA-driven changes may encourage the emergence of new app marketplaces, each with its own curation, pricing, and promotional strategies. This could lead to a more diverse and competitive app distribution landscape, similar to what exists on Android. However, fragmentation may also introduce new challenges around app discovery, user trust, and security, as consumers navigate multiple sources for app downloads
- For Payment and Identity Providers: additional monetisation options
The opening of the iOS ecosystem to alternative payment systems creates new opportunities for payment processors, digital wallets, and identity verification services. These providers can now compete to offer seamless, secure, and user-friendly payment experiences within iOS apps, potentially accelerating the adoption of local and regional payment methods. However, this also raises the bar for security and compliance, as new payment flows must meet both regulatory requirements and Apple’s technical standards for privacy and fraud prevention.
- For Device Manufacturers and Mobile Operators: stronger position to App Stores
Device manufacturers and mobile operators may find new opportunities to pre-install or promote alternative app stores and services, further differentiating their offerings in the EU market. This could also impact negotiations and partnerships with Apple, as the balance of power shifts slightly away from the platform owner.
- For Consumers: potentially lower prices, and higher security threats
End users stand to benefit from increased choice, potentially lower prices, and more innovative app experiences. However, they may also face new risks, such as exposure to less-vetted apps or more complex payment flows. User education and clear communication about the security and privacy implications of using third-party app stores will be essential.
- For the Broader Mobile Ecosystem:
The EU’s regulatory intervention sets a precedent that may influence other jurisdictions. Countries in Asia-Pacific, Latin America, and North America are closely watching the EU’s enforcement of the DMA and Apple’s response. If these changes prove successful in fostering competition and innovation without compromising security, similar regulations could be adopted elsewhere, accelerating the global trend toward open digital markets.
Looking Ahead
Apple’s decision to open its App Store to competitors in the EU is a direct response to regulatory pressure and signals a new era for digital markets in Europe. As the Commission reviews Apple’s compliance and other tech giants adjust their practices, the mobile ecosystem is set for further transformation.
MEF will continue to monitor developments and provide updates on the implications for members and the wider industry. For more insights on regulatory changes and their impact on the mobile ecosystem, join the MEF Members Insight Group on Content and Advertising.
