Rumors Confirm Facebook’s Plan to Launch an Exclusive App Store in Europe
Recent rumors, which have been strongly hinted at by the company itself, indicate that Facebook is secretly developing an app store within its platform. This app store will enable users to download applications directly from the Facebook app by clicking on ads, essentially turning Facebook into a gateway for a diverse range of content.
However, there’s a catch. Unless legislation changes in other regions, this app store will be exclusive to Europe. The reason for this exclusivity is the upcoming implementation of the EU’s Digital Markets Act in 2024. This legislation is expected to compel major tech companies like Apple and Google to remove the restrictions on “side-loading” apps and allow alternative distribution methods.
Europe as the Launchpad
Meta (previously known as Facebook) seems to believe that Europe is a significant market and thus justifies the effort to create a dedicated app store for European users. Moreover, there’s a high likelihood that similar regulatory changes will come into effect in the US and other regions in the future, potentially making this app store global.
The prospect of a new app store presents an opportunity for emerging developers to directly compete with industry giants like Apple and Google, both of which currently impose a 30% commission on app sales. By offering lower fees, a new player like Meta could attract app developers and generate substantial profits.
While alternative app stores may face challenges in capturing the attention of billions of smartphone users accustomed to using a single platform, a renowned brand like Facebook is likely to overcome such obstacles and attract a significant audience.
App manufacturers can now purchase ad placements on Facebook and provide a direct app installation button within the platform, eliminating the need for users to navigate to a separate app store.
The industry has already given a positive response to this news, anticipating the positive impact it will have on developers. Jens Lauritzson, CEO of alternative app store conduit Flexion, highlights the situation by stating, “The introduction of Meta’s app store, driven by regulatory pressure in the EU and changes in the user acquisition industry, will benefit game developers struggling with user acquisition and shrinking profit margins. Increased competition, such as what Meta has announced, will gradually improve the situation for developers.”
Free of Charge
Although the pricing details have not been officially announced, rumors suggest that Meta will not charge any upfront fees for app sales, unlike its competitors. This zero percent fee structure is significantly lower than the current 30% industry standard.
The app store is expected to be launched as a pilot project later this year, primarily focusing on selected Android app developers. This strategic choice aligns with Android’s existing support for side-loading apps. The European launch is planned for spring 2024 when the Digital Markets Act comes into effect.
A Meta spokesperson, Tom Channick, essentially confirmed the company’s intention to launch the app store in an email to The Verge. Channick stated, “We’ve always been interested in helping developers distribute their apps, and new options would add more competition in this space. Developers deserve more ways to easily get their apps to the people that want them.”
With the introduction of more app stores, users will enjoy greater choice, and developers will face fewer financial burdens. It’s a win-win situation for the app ecosystem.