Meta to enable European users to bypass app stores
The EU Digital Markets Act mandates that mobile platforms like Google Play and Apple App Store allow alternative means of app downloads, and Meta means to take advantage
In a strategic move to compete with Apple and Google app stores, Meta is making plans to enable users in the European Union to download apps through Facebook ads, eliminating the need to open the App Store on iOS or the Google Play Store on Android.
As reported by The Verge, the company is planning to test the new ad format with a select group of Android app developers later this year.
The move comes as Meta looks to leverage the EU's Digital Markets Act (DMA), which mandates mobile platforms to facilitate alternative means of app downloads.
The antitrust legislation, which has already been approved by the European Parliament, is anticipated to be enforced by spring 2024. Consequently, all platforms will be obligated to permit the distribution of apps through alternative digital stores.
Under the DMA regulations, companies are prohibited from compelling developers to exclusively utilise their own payment systems. This is significant because both Apple and Google currently require developers distributing apps through the App Store and Google Play, respectively, to use their payment systems.
Presently, both Google and Apple employ measures that make it highly challenging for users to find alternative methods of app downloads on mobile devices.
Although Android permits side-loading of apps, the process is often cumbersome for users. They must search for the desired apps themselves and bypass warnings from Google that indicate it cannot guarantee the security of devices running apps downloaded from sources outside of its app store.
Apple strictly restricts users from downloading and installing apps from any source other than its official app store on iOS.
Enforcement of the DMA could potentially create a new market opportunity for Meta, which has faced challenges since Apple implemented measures to enhance user privacy by making it more difficult for apps to track users. Meta's revenue stream, which relies heavily on advertisements, has been significantly affected by these developments.
As part of the new strategy, Meta plans to test the new ad format with a select group of Android app developers later this year.
Meta highlights the potential benefits for developers of hosting Android apps on their platform and enabling direct downloads by Facebook users, bypassing the need to list apps on traditional app stores.
The company suggests that this approach will lead to improved conversion rates for developers' app install ads.
Meta also intends to make its new platform more appealing, Meta says it won't take a share of the revenue generated by participating apps, at least initially. This approach stands in contrast to Apple and Google, which have faced criticism from developers and regulators regarding their "app taxes", which can range from 15% to 30% based on the developer's scale and size.
Currently, Facebook Ads allows advertisers to promote apps, but users are redirected to the respective app stores for each OS to complete the download.
By enabling direct app downloads from Facebook, Meta anticipates that a higher number of users will choose to download these apps. This shift is expected to yield positive outcomes for both developers and the platform itself.
"We've always been interested in helping developers distribute their apps, and new options would add more competition in this space," Meta spokesperson Tom Channick told The Verge.
"Developers deserve more ways to easily get their apps to the people that want them."
However, Meta is not the only company looking to become a distributor of mobile apps once the DMA takes effect.
Earlier this year, Microsoft revealed its intentions to establish an alternative app store specifically for games on iOS and Android in Europe, with plans to launch it next year.