EdTech Insight – Apple opens up iPhone app store in Europe, a major crack in its ‘walled garden’

by | Jan 26, 2024 | CNBC, News & Insights

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Executive Summary and Main Points

Apple Inc. has introduced substantial changes to its iPhone App Store in Europe, prompted by the European Union’s Digital Markets Act (DMA). This legislation mandates that large technology firms loosen their grip on application distribution platforms by March 2023. Apple’s renowned ecosystem, often referred to as the “walled garden,” historically restricted app distribution to its own App Store, collecting a 30% fee on in-app purchases. Now, developers such as Spotify and Microsoft may develop their own competing app stores and payment systems for iPhone applications, sidestepping Apple’s fees. Despite these openings, Apple intends to impose a new fee structure, including an annual installation charge for prominent apps sidestepping the App Store. Apple believes these changes could compromise user security and compromise battery life for apps not using Apple-engine technology. The modifications, currently exclusive to the European market, represent significant shifts in the digital market landscape, signaling a new era of app distribution and platform openness.

Potential Impact in the Education Sector

The DMA-induced changes to the App Store could significantly impact the education sector, especially in Further Education and Higher Education. The opportunity for institutions to create and distribute their own educational apps without the App Store’s fees might incentivize the development of bespoke learning tools. Moreover, this could accelerate the use of Micro-credentials, as education providers might develop proprietary platforms for issuing and managing these credentials, enhancing their accessibility. If education-driven organizations leverage these rules to foster strategic partnerships, such as collaboration between technology companies and universities, there could be a surge in innovative educational software that caters to the diverse and international student body. Digitalization in education could see rapid growth, with more resources allocated to developing apps that enhance learning experiences outside the traditional classroom setup.

Potential Applicability in the Education Sector

In the wake of the App Store’s alterations, AI and digital tools could see increased use in global education systems. AI-enhanced learning platforms, personalized educational apps, and analytical tools that track student progress could become more widespread, potentially hosted across new, competing app stores. These platforms might utilize AI to curate personalized curriculum content, optimize learning paths, or even facilitate cross-country educational collaboration. Furthermore, the deregulation of app distribution might enable educational institutions to more readily adopt and integrate educational technologies, optimizing their delivery methods to cater to a technologically adept student population.

Criticism and Potential Shortfalls

While the changes induced by the DMA provide a forward-looking vision for app distribution, they come with potential drawbacks. Critics argue that Apple’s compliance with the DMA could lead to a proliferation of “junk fees” and an ecosystem rife with scams and security risks, as apps circumventing the App Store’s review process may lack sufficient vetting. External app stores and alternative payment methods may also challenge users’ privacy and security, posing a significant concern for the education sector where data sensitivity is paramount. International case studies have shown that varying degrees of openness in app markets can lead to inconsistent user experiences and unequal protection standards. Ethical and cultural implications are also at stake, as the debate over the balance of power between tech giants and regulatory bodies, user autonomy, and the corporatization of education continues.

Actionable Recommendations

To capitalize on these technological shifts, international education leaders should consider the following recommendations. Firstly, they should embrace strategic planning that includes potential partnerships with tech companies to harness the new distribution avenues for educational apps. Secondly, investing in proprietary app marketplaces could offer alternatives to traditional content delivery, catering to the localized needs of international campuses. Additionally, leaders must allocate resources for robust cybersecurity measures to protect against the potential vulnerabilities introduced by sidestepping the App Store’s traditional review process. Lastly, education leadership should lobby for regulations that consider the unique needs of the education sector, ensuring that new platforms foster secure, equitable access to educational resources worldwide.

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Source article: https://www.cnbc.com/2024/01/25/apple-opens-up-iphone-app-store-in-europe.html