Apple to allow rival app stores in EU

STORY: Apple just made a big concession in Europe.

The iPhone maker says it will allow software developers to sell apps there through their own websites or online marketplaces.

Previously, it had strictly required all distribution to be through its own app store.

The move is meant to comply with the EU’s Digital Markets Act, which kicked in last week.

It’s intended to rein in tech giants like Apple, Amazon and Microsoft, and create a level playing field for smaller rivals.

But Brussels watchdogs, and competing companies, say Apple’s moves to comply had fallen short.

It has long driven software developers to use its app store, where it charges fees of up to 30%.

Now opening up sales could cost it a reliable stream of revenue, although the firm is far from relinquishing all control.

Developers will still have to meet terms set by Apple, and pay an annual fee per user even if they don’t use the app store.

Even so, the new move comes at a sensitive time for the firm.

It’s struggling with weak demand for its phones in China.

Apple is also seen as lagging rivals in the race to create AI products.

That has seen it lose its title as the world’s most valuable company to Microsoft, which is a big backer of OpenAI.

Last week, Apple stepped back in its feud with Epic Games, allowing the firm to open its own store on iPhones and iPads in Europe.

That too was under pressure from the Digital Markets Act, which allows for fines of up to 10% of global turnover if companies don’t comply.