Apple recently released iOS 17.4 beta, introducing a notable change in line with the European Union’s Digital Markets Act (DMA). This update, exclusive to EU users, allows for sideloading, a process where users can download and install apps from sources outside the official App Store. However, this feature is currently limited to iPhones only, excluding iPads from this flexibility.

No Sideloading for EU iPad Users

The distinction between iPhones and iPads in this context is significant. Despite iPadOS and iOS sharing a similar foundation, Apple has chosen to restrict sideloading and related features to the iPhone. This means that iPad users cannot install third-party app stores or download apps from them. Additionally, options like selecting alternative browser engines or changing the default wallet payment app are confined to the iPhone.

The EU’s DMA plays a pivotal role in this development. It targets major tech platforms, referring to them as “gatekeepers,” and aims to foster a more competitive market by reducing restrictions. Under this act, iOS is categorized as a “gatekeeper” platform, necessitating these changes. Interestingly, the EU views iPadOS as a separate entity from iOS, which might explain Apple’s decision to limit sideloading to iPhones.

Alongside these changes, the Act also impacts Apple’s App Store, another “gatekeeper” service. To align with the EU regulations, Apple has adjusted its commission structure. Initially, developers are charged a 17% commission, which reduces to 10% after a year for most developers and subscribers. These revised commission rates apply to the App Store across all Apple devices, including the iPad.

Apple’s selective implementation of the DMA raises crucial questions about the future of app distribution and user freedom. While iPhone users in the EU gain some long-awaited flexibility, iPad users are left behind, feeling the sting of being treated as second-class citizens within the same ecosystem.

The coming months will likely see ongoing debates and legal challenges as regulators and users scrutinize Apple’s interpretation of the DMA and its impact on a fair and competitive app market.

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Apple is one of the world’s largest companies, wielding economic power that surpasses many countries. However, even this doesn’t exempt the tech giant from adhering to regulations and oversight. For instance, following a European Union decision last year, Apple abandoned the Lightning port and started using the USB-C port in the iPhone 15 series. Now, due to another EU influence, the company is relenting on one of its major stances. Starting from next year, it will be possible to install APKs on the iPhone.

Apple’s App Store Monopoly Challenged as EU Ruling Forces New Rules

If you’re an Android user, you’ve likely ventured outside of the Google Play Store to install applications by downloading APK files. Bypassing Google and installing apps using APKs might not be challenging for you. However, for iPhone users, it’s not so simple, as they are always bound by Apple’s rules with no alternative to the App Store. But soon, installing APKs on the iPhone will become a reality.

To clarify, when we say “installing APK on the iPhone,” we are using familiar terminology. However, APK stands for Android Package Kit and is a file type specific to the Android platform. So, technically, installing APKs on the iPhone is not feasible. The iOS equivalent of APK is IPA, a file format used for distributing iOS applications. Similar to APKs, IPAs contain the application’s code, images, and other resources.

The term for installing applications outside the official app store is called sideloading. The Digital Markets Act, enacted by the European Union on November 1, 2022, enables Apple users to perform the action referred to as “installing APK on the iPhone.” So, when will this happen?

As mentioned earlier, the law is already in effect, meaning Apple is now obligated to implement it. However, the company has requested additional time, citing that its systems are not yet ready. The EU has accepted this request on the condition that the feature will be introduced no later than the iOS 17.2 update in 2024.

Of course, Apple has the option not to comply with the rules of the European Union. However, this could result in penalties amounting to 20% of its global revenue. Failing to pay these penalties could lead to sanctions such as a ban on sales in Europe. Therefore, Apple has no other choice. But why is Apple against sideloading?

Why is Apple against sideloading?

The disruption of the App Store economy could be a significant factor. Apple may argue potential security vulnerabilities as its reason, claiming that iPhones are more secure than Android due to their closed-system design. If everyone starts installing apps from external sources, this could change. However, the reality is a bit different.

The tech giant currently takes a 15% to 30% commission from the earnings of all applications on the App Store. Whether you buy diamonds in a game or subscribe to a service, a portion goes to Apple. Now, app developers might be able to change this and avoid the so-called “Apple Tax.” However, opening the door to pirated installations could also complicate matters for app developers.

What the future holds for Apple and App Store developers is currently uncertain. Nevertheless, the ability to install APKs on the iPhone is a positive development for users amid these uncertainties.

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The European Union has treated Apple quite harshly. Previously, they outlawed the sale of iPhones because the devices don’t come with charging adapters in the box. Later, a law mandating USB Type-C ports for all electronic equipment was passed by the Union, which indirectly hit Apple. A new online report asserts that the EU has ordered the Cupertino tech giant to permit third-party app stores and sideloading of software in their iPhones. The company is supposedly working on it right now.

Apple is only going to add sideloading support in Europe at first. If the company implements the new change on their iPhones, users would be able to download apps without using the App Store, which would eliminate the need for developers to pay Apple’s 15 to 30 per cent fees. According to Apple, sideloading will “undermine the privacy and security measures” that iPhone users depend on, making consumers more susceptible to viruses, swindles, data tracking, and other problems.

If additional countries enact legislation with a similar structure, alternative app stores might become accessible outside of the European Union. For instance, legislation mandating Apple’s approval of sideloading is being considered in the United States. The Digital Markets Act of the European Union, which came into effect on November 1, mandates that “gatekeeper” businesses make their platforms and services available to other businesses and developers. The DMA will have a significant impact on Apple’s platforms and may lead to significant changes to the App Store, Messages, FaceTime, Siri, and other services. Apple has until March 6, 2024, to respect to EU regulations.

According to Bloomberg, Apple is investing a “substantial amount of resources” to open up “critical aspects of Apple’s platforms,” with the help of its software engineering and services staff. The functionality will be available for iOS 17 in 2023, which would put Apple ahead of schedule. Some staff informed Bloomberg that there is a chance that these significant improvements may have an impact on the development of new features for iOS 17.

Apple is thinking about implementing security criteria like verification, a procedure for which it may charge a fee rather than just taking money from software sales, to safeguard customers from the abovementioned risks of sideloading. Users can browse apps outside of the Mac App Store while being safe thanks to Apple’s authentication system for Mac. The iPhones might also use a similar system.

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