Apple is undergoing a significant reorganization of its App Store division, splitting it into two separate teams. This move comes in response to increasing regulatory pressure from the European Union, which has mandated that Apple allow third-party payment methods and alternative app stores on its platform¹².

The Reorganization

The App Store division will now be divided into two groups:

1. App Store Management: This team will continue to oversee the traditional App Store operations.

2. Alternative Marketplaces: This new team will focus on managing and integrating alternative app stores that are emerging in the European Union.

Leadership Changes

As part of this restructuring, Matt Fischer, the vice president of the App Store, will be leaving Apple after more than a decade in the role. Fischer announced his departure in an email to employees, stating that it was the right time to pass the baton to new leaders. Carson Oliver, a senior director at Apple, will take over the App Store division, while Ann Thai, a product director, will lead the team handling alternative distribution. Phil Schiller, the App Store chief, will oversee both divisions.

Regulatory Pressure

The reorganization is largely driven by the European Union's Digital Markets Act, which aims to break up what regulators see as monopolistic practices in app distribution. This legislation requires "gatekeepers" like Apple to allow third-party app stores and payment methods on their platforms. Recently, Fortnite returned to iPhones through the Epic Games Store on iOS, and other alternative app stores like AltStore PAL, Mobivention, and Aptoid have also become available in the region.

Conclusion

This shakeup marks a significant shift in how Apple manages its App Store, reflecting the growing influence of regulatory bodies on tech giants. By splitting the division, Apple aims to better manage the challenges and opportunities presented by these new regulations.