Apple’s App Store Head to Leave in Reorganization Amid Global Scrutiny

Apple Inc.’s head of the App Store is leaving as part of a reorganization of the lucrative division, which has drawn regulatory scrutiny over concerns it wields too much power in the mobile software market.

Matt Fischer, a vice president who has run the App Store business since 2010, is leaving the iPhone maker in October, according to people with knowledge of the matter, who declined to be identified because the changes haven’t been announced. The App Store group is being split into two teams: one overseeing Apple’s own store and another responsible for alternative app distribution.

Phil Schiller, the executive who is ultimately responsible for the App Store, is making the changes in response to regulators forcing 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’ve made the decision to step away from our incredible company,” Fischer told his team in an email Wednesday. “This has been on my mind for some time, and as we are also reorganizing the team to better manage new challenges and opportunities, now is the right moment to pass the baton to two outstanding leaders on my team.”

Carson Oliver, a longtime senior director, will run the App Store group, while Ann Thai, a director in charge of App Store features like search and discovery, will lead the new team responsible for alternative distribution. Both managers will report to Schiller.

A spokesperson for Cupertino, California-based Apple declined to comment.

Apple’s App Store business has been under pressure from developers and regulators for the past several years. Earlier in 2024, the company had to revamp its operations to conform with new laws from the EU. Apple recently changed its commission structure in the EU and opened up its devices to third-party marketplaces.

Read More: Apple Risks More App Store Fines as EU Antitrust Rift Widens

But some developers and the EU have complained that Apple’s changes don’t go far enough. They note that the company, in some cases, is still looking to collect fees for apps and subscriptions sold on its platforms — even within third-party stores. The changes in the EU, along with possible shifts in other regions, have jeopardized the App Store’s role as a growth engine for Apple.

The business generates about $20 billion in revenue per year as part of Apple’s services segment. Services have become especially critical for Apple in recent years, since growth of its main hardware products, including the iPhone, has stalled.

In addition to overseeing App Stores for all of Apple’s devices, Fischer has run the company’s Arcade service, a gaming platform that launched in 2019.

Schiller, meanwhile, was named an Apple Fellow in 2020, when he stepped down from his role as marketing chief. He also remains in charge of Apple’s product launch events.