Apple Inc. (NASDAQ:AAPL) has initiated the beta testing phase of its iOS 17.4, introducing the feature of app sideloading exclusively for users in the EU. 

What Happened: The introduction of app sideloading is Apple’s response to the EU’s Digital Markets Act or DMA antitrust legislation. However, the feature will not be available to users outside the EU. 

The new OS version introduces major changes, including the introduction of “App Marketplaces,” a means for alternative app stores to distribute apps outside of the App Store, given they comply with stringent rules set by Apple.

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Notably, third-party app store creators must hold a minimum €1 million letter of credit to ensure support for developers and customers. Several features are exclusively designed for EU users, such as the allowance for third-party apps to use NFC for payment without Apple Pay and the creation of alternative web browsers to Apple’s WebKit, reported 9To5Mac. 

The system, known internally as “countryd,” combines different information to ascertain the user’s region. The system has reportedly been around since iOS 16.2 wasn't used until now. 

Below are some of the things Apple checks to determine if a device is eligible for sideloading and Apple Marketplaces, the report noted, citing systems reports and code seen by them 

• Billing address associated with the Apple ID.
• The user’s present location (reportedly, Apple checks only the country and avoids precise location tracking for privacy considerations).
• The present geographical region is configured in iOS settings.
• The classification of the device (whether it is an iPhone, iPad, etc.).

Furthermore, the system checks if the device originates from China to limit sideloading.

Apple has the capability to update the list of countries where sideloading is enabled at any time from its server. If more regions pass similar antitrust legislation to the DMA, Apple can implement the same changes in those regions without issuing another iOS update, the report noted. 

Why It Matters: Despite the changes made by Apple to align with the EU’s DMA, including a commission reduction from 30% to 17%, JP Morgan suggests it will not significantly impact Apple’s App Store revenue. 

The new fifty-cent fee is expected to offset the commission cuts, and the EU only accounts for around 6% of the company’s App Store revenue.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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