Due to regulatory pressure in the European Union, Apple has decided to reorganize its App Store division.
Bloomberg announced the news on August 21, citing anonymous sources familiar with the matter. The App Store division will be split into two teams:
- Apple will continue to develop its own iOS store;
- Another will oversee alternative third-party app stores on the platform (such as the recently launched Epic Games Store for mobile).
As a result, Matt Fischer, who has headed the App Store and Apple Arcade since 2010, will leave Apple. He has been with the company for 21 years, initially serving as director of marketing and partnerships at iTunes.
Carson Oliver, senior director of App Store business management, will lead the continued development of the App Store group. Another executive, Ann Thai, currently worldwide product director of the App Store, will lead the second team responsible for alternative app distribution.
Fischer confirmed the news in a post on LinkedIn, saying he had been considering resigning for some time. He will leave the company in mid-October and will help Oliver and Thai with the transition over the coming months.
“I’m incredibly proud of what we’ve built together – a platform with over 1 billion customers worldwide, with developers generating over $1 trillion in total revenue and sales in the App Store ecosystem in 2022 alone,” Fischer said, adding that he plans to take some time off with his family before exploring new opportunities.
The changes come amid growing pressure on Apple in the European Union. The company must now comply with the new Digital Markets Act (DMA), which requires so-called “gatekeepers” to allow third-party app stores on their platforms and allow other developers to inform customers of alternative purchasing options.
Apple is trying to fight back by forcing developers who offer their products outside the App Store to pay €0.50 for each install after the first million per year. Earlier this month, the company also introduced additional fees and announced that it would charge 20% on sales made through external links outside its own store.
In June, the European Commission charged Apple with DMA violations, saying the company was preventing app developers from “freely directing consumers to alternative channels for offers and content.” The regulator also launched an investigation into Apple, fearing the new fees were undermining efforts to create alternatives to the App Store.
