Apple iOS 17.4: A Radical Change Coming to Your iPhone
In early March, Apple is set to release its next big iOS update, iOS 17.4, which brings a host of new features and improvements. Among the notable additions is an update to the Stolen Device Protection feature, designed to enhance device security. However, the upcoming update holds more than just exciting new features; it could potentially reshape the iPhone and how we use it.
One significant change that is expected to occur, particularly for iPhone users in the European Union (EU), is the opening up of the device to third-party influences. Bloomberg's Mark Gurman describes this change as a sweeping overhaul of the software powering the iPhone, impacting iOS, the App Store, and Safari browser within the EU. However, this change is not limited to just the EU; it is a glimpse into the future of the platform, which may eventually impact users globally.
The alterations that will allow rival app marketplaces to exist and modify Apple's commission fees for app developers are likely to extend beyond the EU's borders. Similarly, changes to the default web browser on the iPhone may also transcend geographical boundaries. While increased app variety and browser choices may be welcomed by many users, Apple suggests that this new system could potentially be less secure.
To address concerns about security, Apple is introducing a range of new anti-malware tools and warnings for both consumers and developers. The company will even require apps downloaded from outside the App Store to undergo a light review process and notarization. Additionally, Apple has proposed new terms for developers considering a move from the App Store to rival marketplaces. They have outlined a deal that offers cost savings for developers who remain within Apple's ecosystem by reducing commission levels.
However, for developers choosing alternate routes, this results in reduced revenue for Apple. To offset this loss, Apple plans to introduce new fees, including the Core Technology Fee, which necessitates payments for each app installation. While the individual fee may be relatively low at $0.54 or 0.5€, when multiplied by a large number of installations, it can accumulate significantly.
While Apple claims that 99% of developers will either pay the same or less under the new system, the introduction of the Core Technology Fee seems aimed at larger developers offering free apps, such as Spotify and Meta. This aspect has garnered criticism, with Spotify's CEO, Daniel Ek, referring to it as 'extortion.'
It is evident that the upcoming changes in the App Store and on the iPhone, particularly within the EU, will bring about a radical transformation. Apple's adjustments are in response to the Digital Marketplace Act, and it is likely that further changes will occur in the future. As Gurman aptly states, 'It all adds up to an iPhone that's more customizable and less hostile to outside software.' Compliance with EU regulations may usher in a new era for the iPhone, potentially impacting usage patterns globally. It remains to be seen whether additional software changes beyond the ones already announced will be unveiled in the coming months.
Update: Controversy surrounding Apple's proposed changes continues to mount. Spotify, in particular, has been vocal in its criticism, with the company's CEO deeming it 'extortion.' Apple responded by stating that it is supporting all developers, including Spotify, and that the changes offer developers more choice regarding app distribution and payment processing. Amidst the polarized reactions, Steven Sinofsky from Hardcore Software commends Apple for its response and proposed App Store changes, despite considering the law an assault on Apple's brand promise.
Moreover, it's important to note that the changes implemented in the EU will exclusively impact the iPhone and not the iPad. This could lead to a situation where iPhone users have access to a broader range of apps that are unavailable on their tablets. Additionally, the choice of web browser engines offered to iPhone users will not extend to the iPad because iPadOS does not meet the thresholds outlined in the Digital Marketplace Act.
As the dust settles, more details regarding Apple's iOS changes in response to the EU's Digital Markets Act have emerged. It turns out that app developers can place their apps in multiple locations. This means that an app can exist simultaneously in the App Store, alternative marketplaces, or even multiple other marketplaces. Each marketplace will appear as a regular app on the iPhone, allowing users to browse and download apps from these platforms' associated websites. Nevertheless, the various marketplaces may employ different payment structures, and the controversial 'Core Technology Fee' has drawn significant attention. Charging half a euro per account download annually for downloads exceeding one million, there were concerns that updates might also be considered downloads. This would have raised issues for developers, potentially leading them to delay critical bug fixes to avoid incurring costs. However, Apple clarified that updates within a 12-month period following the initial download would not be counted towards the one million total. The rule would only apply if an update is installed more than 12 months after the initial download.
Currently, Apple claims that 88% of European developers pay no commission to the company. Their wide-ranging presence in 175 countries ensures many developers will likely remain within the secure environment of the Apple Store. While these changes are complex, Apple will likely refine them in the coming months and years, aiming to preserve the high standards of security and reliability set within the iPhone ecosystem.