Apple completely revamping App Store operation due to EU pressure

Apple is said to restructuring its App Store business in response to legislation from the EU.

Bloomberg journalist Mark Gurman has written that Apple executive Matt Fischer is leaving the company, having run the App Store since 2010. In a parting email, Fischer claimed the fact that the company was “reorganizing the team to better manage new challenges and opportunities” played into his decision.

The report elaborates on these comments, claiming that Apple is in the process of restructuring the company’s lucrative digital storefront. As part of the plan, Apple’s App Store division is set to be split in two, with one team (led by senior director Carson Oliver) handling the App Store itself, and the other (led by product director Ann Thai) handling ‘alternative app distribution’.

Both directors will report to Apple Fellow and App Store head honcho Phil Schiller, who is orchestrating the whole restructuring project.

If you’re wondering what all of this is about, then it seems the rejig has been instigated due to EU rulings that have essentially forced Apple to permit alternative app stores and payment methods for the first time.

Just last week, the Epic Games Store launched in the EU, thus making Fortnite available to iOS gamers for the first time in four years. Apple’s bitter litigation with Epic has been one of the foundational blocks for the recent breakthrough, which is now allowing third party app stores to appear.

Apple’s App Store rakes in about $20 billion per year for the company, and that major source of revenue will be threatened by the introduction of competition. This couldn’t have come at a worse time for Apple, as iPhone sales – while still healthy – have flattened out.

The company will hope to redress that with the launch of the iPhone 16 range next month, although reports suggest that next year’s iPhone 17 will be the one to watch.