The system Apple set up to enable EU residents to load apps onto their iPhones outside the App Store violates the Digital Markets Act, according to a decision handed down Wednesday by the European Commission. It cites “overly strict eligibility requirements” and Apple’s new Core Technology Fee as reasons.
It’s a preliminary decision, but if Apple doesn’t make the app sideloading process easier, the DMA gives the European Commission the right to hit the iPhone maker with hefty fines.
EU: iPhone sideloading rules are too restrictive
The goal of the European Union’s Digital Markets Act is to open up Big Tech to more competition. Under the DMA, Apple is required to allow iPhone apps to be installed by means other than the official App Store. That can be via third-party app stores, or enabling apps to be downloaded to the iPhone directly from the web.
Apple allowed both rival software stores and direct sideloading from the web in 2024. But the EC said Wednesday that the system Apple created includes too many restrictions to comply with the DMA.
“Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee),” the EC said of its preliminary decision. “Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.”
Just preliminary for now
As the European Commission notes, Apple now has the opportunity to look over the documents the EC used to reach the preliminary decision and respond. It’s possible the Mac-maker can convince the Commission to change its mind.
If not, Apple will be forced to change the wayside loading is done in the EU to comply with the DMA. If that doesn’t happen, the EC can’t be expected to begin levying fines to force the changes — it’s already hit Apple with a 500 million euro ($570 million) fine for its anti-steering policies.
iPhone sideloading is very controversial
The EC’s preliminary decision that Apple’s system for directly loading apps onto iPhones is too convoluted is a win for fans of sideloading. This group wants to be able to install any application onto their handset without Apple approving it first.
On the other hand, Apple says sideloading brings “greater risks to users and developers. This includes new avenues for malware, fraud and scams, illicit and harmful content, and other privacy and security threats.”
Just note that the sideloading rules enforced by the DMA apply only to residents of the European Union. The practice is still banned elsewhere.
