The antitrust case against Apple's App Store exclusivity in the United States is gaining momentum, as affirmed by the head of the Department of Justice unit overseeing competition law violations. It suggests that Apple might soon be compelled to permit third-party app stores and/or sideloading not only in Europe but also in the United States.
Antitrust regulators have been scrutinizing Apple's tight control over third-party iPhone apps for an extended period. Currently, the App Store serves as the exclusive marketplace for both consumers purchasing and developers selling iPhone apps. Apple exercises full authority over the selection of apps, setting its own terms, including a 15% or 30% commission, which many regulators view as a breach of competition law.
The European Union has taken legislative action through the Digital Markets Act (DMA), asserting that the App Store falls under its jurisdiction. This mandates Apple to foster competition in the iPhone app market, likely requiring the admission of competing app stores. Apple must comply with this legislation by April, prompting the company to dedicate teams to address this issue over the past year.
Simultaneously, the U.S. Department of Justice (DOJ) has been conducting its own investigation into the matter for years. There is a growing expectation among competition experts that the DOJ will reach a similar conclusion, necessitating Apple to allow either third-party app stores or sideloading of iPhone apps, or potentially both. The DOJ's investigation, as indicated by its lead, seems to be approaching a decision.
Microsoft is anticipated to be among the first companies to establish a third-party app store for iOS apps, and major gaming companies are likely to follow suit. Given that games contribute significantly to Apple's App Store revenue, this shift could have substantial implications.
Notably, global scrutiny of Apple's practices is not limited to the United States and Europe. Japan is actively preparing its own antitrust legislation targeting major tech companies, including Apple and Google, requiring them to permit third-party app stores and alternative payment methods.
Considering the mounting international pressure, there's a growing likelihood that Apple may proactively implement changes globally to comply with evolving laws, rather than facing a piecemeal adoption forced by individual countries or regions.
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