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Apple is reportedly splitting its App Store division in two, and will lose the unit’s current Vice President in the process.
Bloomberg sources claim the company will have one team devoted to the App Store itself, and another to monitoring app distribution through alternative stores.The move will supposedly help Apple ensure compliance with regulation in the European Union (EU) and other regions.
As part of the move, App Store VP Matt Fischer is said to be leaving Apple as of October. The insiders say Fischer told employees he had been considering an exit for a while, and that now was a good opportunity.
Senior Director Carson Oliver will run the App Store, according to the sources. App Store feature director Ann Thai is now set to run the alt distribution channel.
We’ve asked Apple for comment and will let you know if we receive a response.
The EU’s European Commission determined in June that Apple was violating the Digital Markets Act (DMA) with App Store policies, including revised ones meant to satisfy regulators. It allegedly didn’t do enough to let developers steer customers to purchases outside of the store, and overcharged creators with transaction fees. There were also concerns the installation process was too complicated for apps installed outside of the official shop.
Apple has long resisted opening the iPhone and iPad to third-party app marketplaces. It has argued that these stores pose security risks. To a degree, that’s true — Kaspersky notes that most Android malware spreads through outside stores and other unofficial sources. While rogue code occasionally makes its way into first-party portals like Apple’s own and Google Play, the reach tends to be limited.
However, critics, regulators, and rivals maintain that Apple is misusing its strict control of iPhone and iPad app distribution to stifle competition and arbitrarily boost revenue. Spotify in particular has complained about Apple’s cut of in-app purchases and the inability to point potential subscribers to its website. Services like the App Store represented over $24 billion of Apple’s revenue in its fiscal second quarter, and it risks losing some of that money if customers turn elsewhere.
The reported split won’t necessarily lead to a major change in strategy. However, it could help Apple better adapt to government requests. This might prove crucial given the US Justice Department’s antitrust lawsuit accusing the tech giant of abusing its policies and relatively closed ecosystem.
