Apple allows external third-party applications to be purchased on its devices

Apple is preparing to allow third-party apps on its devices to meet new European Union (EU) antitrust requirements, which could be seen as a victory for crypto and NFT developers, at least in Europe.

 FACTS

• The new rules allow European customers to download alternative apps outside the Apple App Store, bypassing Apple's 30% commission and app restrictions.

• Apple had strict rules for NFT apps, requiring users to make in-app purchases with a 30% commission. While the apps were not to support cryptocurrency payments.

• The law will apply from May 2023 and companies will have to be fully compliant by 2024.

• Apple is considering imposing security requirements on software offered outside its shop (such as Apple Authentication) to protect users from unsafe apps.

• Changes to Apple's closed ecosystem would only apply to the EU, with other regions expected to enact similar legislation, such as the proposed Open App Markets Act in the US.

CHALLENGES

• Opening up competition: Apple's decision to open up its ecosystem is a response to the EU's Digital Marketplaces Act, which aims to regulate so-called gatekeepers and ensure that platforms behave fairly through certain measures allowing third parties to interact with the operator's own services.

• The end of Apple's 30% commission: The new rules will allow European customers to download alternative app shops outside the App Store. This will allow them to download alternative apps to avoid Apple's notorious 30% commission.

• An opening to crypto payments: Apple has not yet decided whether it will implement a section of the law that allows developers to install alternative payment systems in non-Apple apps. If it does, it could open up payment systems that allow the use of crypto-currency.

MARKET PERSPECTIVE

• Apple's compliance resulted in Coinbase's standalone wallet app update being blocked on 1 December, as Apple wanted to charge 30% for in-app purchases that Coinbase did not approve of. He then claimed that Apple wanted the wallet to ban NFT transactions if they could not be made via an integrated purchase system.

• Several players have recently enabled crypto-currency card payments, which could boost the Web 3.0 ecosystem in 2023. Uncertainties remain, including legal and trust issues. But the increased initiatives taken by some should reassure the market.

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