Apple HQ in Cupertino, California.
Enlarge / Apple HQ in Cupertino, California.

According to a report, employees at Apple are working on changes to the operating system that will allow the iPhone to be used outside of the App Store. According to the article, Apple is trying to take action by 2024 in response to the Digital Markets Act of the European Union. The changes could be wide as soon as the release of the next version of the operating system.

This would mark a dramatic shift from Apple's long-standing position that third-party app stores and side loading apps from outside the App Store would pose security and privacy risks. Apple is trying to limit users' exposure to malicious apps. The company is discussing the possibility of still requiring outside apps to be verified by Apple with specific security requirements.

Some version of that approach might look like the situation on the Mac, where you can install any app you want, but you have to jump through some hoops to get it.

Whatever the specific outcome, Bloomberg's sources say that the initiative to make this happen is not popular within the company, even though numerous people across several teams are involved in it. Some workers agree with the company line about privacy and security, while others see it as a distraction from adding other features or addressing other issues in Apple's software.

In response to the Digital Markets Act, features that were previously only available to Apple will be open to third party developers. Near-field payments can be made for third-party apps, and third-party camera apps can gain more access to the camera's features.

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Apple hasn't made any specific plans to address the Digital Markets Act, but there are still more changes that need to be made. Apple engineers fear that interoperability changes could jeopardize end-to-end encryption and other privacy and security features of the messaging platform that help distinguish it from alternatives.

The Digital Markets Act requires Apple to allow third-party payment systems in their apps. As part of an agreement with Japan's government, Apple allowed reader and cloud-based apps to direct users to web-based payments.

Changes in that area will have an impact on Apple's bottom line.

According to the article, the changes might only take effect in Europe and may not affect users in North America or other regions unaffected by the legislation. Apple has largely offered the same features and experience in each operating system and device across regions. Many of the details about Apple's plan are not finalized.