(Bloomberg) — The head of Apple Inc.’s App Store is leaving the company as part of a shakeup of the lucrative division, which has come under regulators’ scrutiny over concerns it has too much influence in the mobile software market.
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Matt Fischer, vice president and head of the App Store business since 2010, is leaving the iPhone maker in October, according to people familiar with the matter who asked not to be identified because the changes have not yet been announced. The App Store group will be split into two teams: one that will oversee Apple’s own store and another that will be responsible for distributing alternative apps.
With these changes, Phil Schiller, who is ultimately responsible for the App Store, is responding to demands from regulators that force Apple to allow alternative stores and payment methods for apps on the iPhone, iPad and the company’s other devices.
“After 21 years at Apple, I have made the decision to leave our incredible company,” Fischer told his team in an email on Wednesday. “This has been on my mind for some time, and as we also reorganize the team to better address new challenges and opportunities, now is the right time to pass the baton to two outstanding leaders on my team.”
Carson Oliver, a longtime senior director, will lead the App Store group, while Ann Thai, a director responsible for App Store functions such as search and discovery, will lead the new team responsible for alternative distribution. Both executives will report to Schiller.
A spokesman for Apple, based in Cupertino, California, declined to comment.
Apple’s App Store business has been under pressure from developers and regulators for several years, and in early 2024 the company had to change its operations to comply with the EU’s new laws. Apple recently changed its commission structure in the EU and opened its devices to third-party marketplaces.
But some developers and the EU complain that Apple’s changes do not go far enough. They point out that in some cases the company still tries to charge for apps and subscriptions sold on its platforms – even in third-party stores. The changes in the EU and potential changes in other regions threaten the App Store’s role as a growth engine for Apple.
The business generates revenue of around $20 billion a year as part of Apple’s services segment. Services have become particularly important to Apple in recent years as growth of its core hardware products, including the iPhone, has stalled.
In addition to overseeing the app stores for all Apple devices, Fischer leads the company’s Arcade service, a gaming platform launched in 2019.
Schiller was named an Apple Fellow in 2020 when he stepped down from his position as chief marketing officer. He also remains responsible for Apple’s product launch events.
(Updated with context about new app regulations starting in the seventh paragraph.)
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