The business believes that the five newly proposed antitrust legislation would have a negative impact on the iPhone.
Back in 2011, Phil Schiller informed other Apple executives that the firm will have to change the income split from the App Store at some point, and he urged them to find a solution before it became a battle against external forces. Ten years later, the firm is attempting to avoid a situation in which developers and authorities are pressing it to enable app sideloading on iOS devices.
The App Store is a money printing machine that generated $643 billion in sales last year, which is why Apple uses every occasion to tout its role in the creation of an app-based economy that will soon reach $1 trillion per year. The company explained during the Epic Games trial that it’s being wrongly accused of gatekeeping the App Store, and that it doesn’t make nearly as much money from it as you would think.
Epic’s lawsuit against Apple may not be successful in bringing Fortnite back on iOS, but it’s already kicked in a public debate about the Cupertino giant’s insistence on making the App Store the one and only way users can download apps on iPhone and iPads. Regulators in the US and the EU are scrutinizing Big Tech corporations and preparing a new set of antitrust rules that could see the tech industry change dramatically over the next few years.
Today, Apple unveiled a 16-page report titled “Building a Trusted Ecosystem for Millions of Apps,” where it tries to make a case for why the App Store works the way it does and the impact sideloading apps would have on the security and users privacy protections that are currently in place.
Apple claims that enabling sideloading would expose over 1 billion iOS users to severe security concerns since bad actors would have a great incentive to use this new channel for defrauding consumers or installing malware on their phones. According to the firm, the stringent App Store review process, together with built-in iOS security such as running applications in a sandbox, is the reason iOS users experience 47 times less malware in the wild when compared to Android users.
The timing of the study is intriguing, as lawmakers are now considering five antitrust laws aimed at internet behemoths such as Amazon, Google, Apple, and Facebook.
Google, Facebook, and Amazon on Tuesday released statements where they warn of “significant negative effects” on consumers and small to medium sized businesses, from price hikes to degrading services that many depend on to earn an income. Google also believes the new bills have the potential to “undermine US technology leadership.”
Apple didn’t comment on the bills, but industry groups backed by and other tech and media companies expressed their concerns on the fast-tracking of the proposed antitrust legislation. The Cupertino giant is, however, aggressively lobbying against the bills, as Apple CEO Tim Cook personally called Speaker Nancy Pelosi on Tuesday to warn her that they have the potential to seriously disrupt the iPhone. Cook is also scheduled to have a virtual meeting with EU competition head Margrethe Vestager today.