Tuesday, January 31, 2023
HomeMarketEurope May Force Apple to Allow Third-Party App Stores. Investors Shrug.

Europe May Force Apple to Allow Third-Party App Stores. Investors Shrug.

Apple currently takes a hefty cut from sales made through its app store.

- Advertisement -

Scott Olson/Getty Images

shares were set to fall slightly on Wednesday after a report was released saying the company may allow others to have app stores on its mobile and tablet devices.

The move would come in response to pressure from European regulators after high-profile complaints that Apple’s cut on anything sold through its app store is a barrier to competition, Bloomberg reported. 

Allowing other app stores would mark a shift in its business model, but analysts at ISI Evercore said it won’t necessarily make a big dent because Apple’s app store will remain the main hub.

“We ultimately do not see a large impact from allowing third-party app stores, said analysts led by Amit Daryanani in a note on Wednesday.” The group retained its Outperform rating on the stock, with a price target of $190.

Apple slipped 0.4% in premarket trading to $144.96. 

The European Union’s Digital Markets Act takes effect in May next year. That is expected to result in platforms starting to allow alternative app stores or additional ways to pay for in-app purchases. 

Other countries, including the U.S., are also considering legislation that would force big tech apps stores owned by companies such as Apple and Google to allow rivals to have their own stores on devices. 

Apple didn’t immediately respond to requests for comment.

Write to brian.swint@barrons.com

Credit: marketwatch.com

- Advertisment -

Most Popular