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Apple has laid out a sweeping plan to break down some of the competitive barriers it has built around its lucrative iPhone franchise.
Thursday’s announcement comes as it moves to comply with upcoming European regulations aimed at giving consumers the option of using alternative app stores.
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The overhaul, which will take effect in early March, will include concessions that Apple had previously refused to make in its App Store, including reducing the fees it charges developers in Europe.
In particular, Apple will allow iPhone users in Europe for the first time to use application stores other than the one operated by the company that is installed on the mobile device. It will also allow developers to offer alternative payment systems that could help them make more money while lowering their prices.
But Apple says it believes opening the iPhone to strangers will also increase the chances that consumers who venture outside their proprietary system will be exposed to hackers and other security problems. He says he is taking what he considers a risky step just to comply with European rules that come into force on March 7.
The revisions will also include reducing the 15 to 30 percent fee that Apple plans to continue charging in the rest of the world for in-app transactions completed on the iPhone.
In Europe alone, Apple is reducing its fee on in-app transactions from 10 percent to 17 percent for developers who choose to stay within the company’s payment processing system. Apple will not charge any fees for in-app transactions made through alternative payment systems.
This is in stark contrast to how Apple is complying with a court ruling that went into effect last week requiring it to allow iPhone apps to provide links to different payment options in the United States. If an in-app transaction is completed outside of Apple’s system in the US, the company plans to charge fees of 12 to 27 percent to avoid the free download on your iPhone software. Apple will continue to charge between 15 and 30 percent on app transactions made through its payment system in the United States.