Apple’s rival is positioning itself as an alternative to its flagship App Store as the iPhone maker prepares to allow others into the European Union on its devices.
The bloc’s Digital Market Act (DMA) would force Apple and fellow tech giant Google to provide space for third-party app stores on their respective iOS and Android devices.
Under the DMA, which goes into effect on a rolling basis over the next two years, third-party alternatives will have an easier path to come to iPhone and Android devices.
And as components of the law go into effect, companies ranging from small startups to giants like Amazon and Microsoft could try to lure consumers and app developers away from Apple and Google alike.
Ben Wood, CMO of industry analysis firm CSS Insights, said he expects an “avalanche of app stores” in the near future.
Wood told Reuters, “There is an ’emerging coalition of interested’, and they all have a vested interest in not paying Apple in taxes anymore.”
Apple and Google did not respond to requests for comment.
Android users can currently install apps from alternative sources, a process known as “sideloading”, but this often requires them to turn down certain security settings.
Apple’s apparent concessions on sideloading are a win for industry leaders like the Twitter owner Elon Musk and Spotify CEO Daniel Ek, have both expressed regret for the company’s 30% surcharge on purchases made through its App Store.
Rivals are plotting to lure frustrated developers to their stores, promising lower commission fees and the prospect of exclusivity deals with popular apps.
“Competition is a good way to improve services,” said Paulo Trajantos, CEO of Portugal’s Aptoide, which takes a 15% to 25% cut of in-app purchases.
Deals for exclusive content could fuel competition in app stores just like the “streaming wars” between netflix And challengers like Disney+ and Amazon Prime, Trajantos said, “Netflix has content that HBO doesn’t have … The App Store can be like that.”
Paddle, the payment processor for software companies, has created its own rival to the App Store, which is expected to launch in Europe once the DMA is implemented.
CEO Christian Owens said, “The 30% fee is actually quite egregious when we look at how much it actually costs to process payments, and what Apple is actually offering.”
Owens said that Paddle’s in-app payment system would charge developers between 5% and 10% on transactions.
“The biggest barrier that needs to be overcome is the consumer,” Wood said at CSS Insights.
read all Latest Tech News here