Apple has revealed a comprehensive plan to dismantle some of the obstacles to competition that it has erected around its successful iPhone brand.

The statement on Thursday is part of the company’s efforts to conform to impending European rules that would grant users the option to use different app stores.

Early in March is when the changes are expected to go into effect. Among the concessions Apple had previously refused to make in its app store are a reduction in the fees it charges European developers.

Most significantly, Apple is allowing iPhone users in Europe to use app stores other than the company-run one that is pre-installed on the device for the first time. Additionally, it will allow developers to provide other payment options, which may increase revenue and allow them to reduce pricing.

However, Apple claims that making the iPhone available to third parties will also raise the likelihood that users who go outside of its exclusive system could become victims of hackers and other security issues. It claims that it is merely taking this dangerous move in order to comply with European regulations that go into force on March 7.

Among the changes will be a reduction in the commission Apple intends to charge for in-app purchases made on the iPhone from 15 to 30 percent for the remainder of the world.

Apple is reducing its in-app transaction commission to 10% to 17% in Europe exclusively for developers who choose to continue using the business’s payment processing infrastructure. When using an alternate payment method to complete an in-app transaction, Apple will not receive any compensation.

Apple is behaving in accordance with a court order that went into force last week, requiring it to permit iPhone apps to link to various payment methods in the United States. Apple intends to collect commissions ranging from 12 to 27 percent whenever an in-app purchase is conducted outside of the US Apple system in order to stop freeloading its iPhone software. In the US, Apple will still charge between 15% and 30% for app transactions made through its payment system.

SOURCE: https://www.business-standard.com/world-news/apple-to-open-iphone-to-alternative-app-stores-lower-fees-in-europe-124012600002_1.html