Apple defends its App Store 'walled garden' ahead of antitrust debate in US Congress

Allowing users to sideload would open the doors for scammers and malware, it argues

Technology giant Apple has published a 16-page report that defends its tightly policed App Store and explains why allowing iOS users to install apps from outside of App Store would be a huge security risk for users.

The report [pdf], entitled 'Building a Trusted Ecosystem for Millions of Apps,' comes as the US lawmakers are preparing to debate a set of antitrust bills intended to curb dominance of tech giants on the digital market.

Two of the five bills will affect Apple, forcing it to allow apps from other app stores to be installed on iPhones.

Apple says in its report that its App Store protects iPhone users from privacy and security threats, and allowing users to sideload (download apps from outside the App Store) would simply open the doors for scammers and malware.

It would also put children at risk as outside apps would not provide enough parental controls, the company claims.

Apple currently allows the iPhone, iPad and Apple Watch users to download apps only through the App Store. The company argues it rigorously reviews each app before allowing it to be downloaded from App Store.

However, the company has received significant antitrust scrutiny in recent years over its App Store policies. Apple currently charges developers 15 per cent to 30 per cent fees on their sales through App Store. Moreover, buyers can only use Apple's secure payment platform for in-app purchases.

Many developers complain that the way Apple runs its developer platform as a 'walled garden' is monopolistic and unfair.

Last year, Fortnite maker Epic Games filed an antitrust suit against Apple in a federal court in California, seeking to force Apple to allow installing alternative app stores on iPhones, similar to those Apple permits on Mac computers. Epic complained that Apple's approach is too restrictive, and that competing technologies should be allowed onto its mobile phones as well. It also argued that Apple can easily implement security measures on iPhones.

In his testimony in that case, Apple's senior vice president Craig Federighi argued that Apple shouldn't be forced to loosen its grip over iPhone and iPad app distribution. The executive said that "iOS has established a dramatically higher bar for customer protection," and in its comparison, Apple's MacOS operating system has "unacceptable" level of malware.

Apple has also argued that Google's Android OS, which allows users to install apps outside of Play Store, is riddled with multiple security holes.

"Studies show that third-party app stores for Android devices, where apps are not subject to review, are much riskier and more likely to contain malware as opposed to official app stores," the iPhone maker says in its report.

"As a result, security experts advise consumers against using third-party app stores because they are unsafe."

Apple's latest arguments in favour of its App Store policies have come as Google has announced a reduced commission tier for developers using its platform.

The company is now sending out emails on a rolling basis to developers, stating that they can now enrol for the 15 per cent service fee (instead of 30 per cent) for their first $1 million of earnings each year.

"To make sure you are eligible for the 15 per cent service fee tier, you'll need to create an Account group in Google Play Console. The Account Group page is open now, so head to Play Console to enrol," Google says in the email, according to Neowin.

The reduced service fee tier will begin on 1st July 2021.

This is similar to the pattern announced by Apple in November 2020. The company said at the time that it would reduce its App Store cut from 30 per cent to 15 per cent for developers with annual revenues less than $1 million in 2020.

App developers earning more than $1 million in the previous calendar year will still have to pay 30 per cent commission on purchases made by iPhone and iPad users on all of their apps.