Apple is making major changes to its EU App Store – What it means for users

TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Thursday, January 25.

Full Video Transcript Below:

J.D. DURKIN: I’m J.D. Durkin, reporting from the New York Stock Exchange. Stocks were in the green to close out today’s session. The Dow closed up 243 points, the Nasdaq closed up fractionally, and the S&P closed just over half a percent higher. Investors are reacting to a stronger than expected GDP report – the U.S. economy grew at a 3.3 percent pace during the last few months of 2023, above Wall Street expectations.

Investors are looking ahead to Friday’s PCE report. The Personal Consumption Expenditures will give investors a better picture of the state of rising prices in the U.S.

In other news, Apple’s “walled garden” finally has a crack in it, as the iPhone maker announced significant changes to its App Store in Europe. For the first time in the company’s history, non-Apple affiliated developers will be able to list and distribute apps in Apple’s App Store. In addition to being able to list their programs, Apple is also slashing the fees it takes from developers.

The move comes as European regulators continue to crack down on big tech companies. Europe’s Digital Markets Act, which takes effect in March 2024, is aimed at stopping anti-competitive practices implemented by big tech. It lists several big names, including Apple, Microsoft, Google, and Amazon, as “gatekeepers” – which restrict access to important platform services like advertising and search.

Apple, as you might expect, has pushed back on having to conform to the new legislation. The company says the new rules could put users at risk for scams or fraud because apps that don’t go directly through the App Store are not reviewed by Apple itself.

Apple declined to say whether or not the changes made in European markets will be introduced elsewhere.

That’s it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.

Related Posts