And they will have a vastly reduced set of people willing to use their software as a result. Other than a few key things, that's probably more trouble than it's worth for a lot of people, and the requisite "Warning: This app store is handled by someone else to make absolutely sure you trust the company running it" will scare a bunch more off, if it's something new.
If, on the other hand, it's Steam, or Epic, or some other super well known steward of content that has a well known name and reputation, then maybe if users are also lured by lower prices, they might consider it.
You know, exactly the same way you might feel a lot more comfortable buying that watch or toy you really want if it's from your local target and not some random guy with a table on the street.
They will just (effectively) all move over and (effectively) none of them will read any warning text.
God only knows what companies like 100% Tencent owned Riot Games will have running on millions of Americans' phones once they get the elevated access an app store requires.
Of course, the app can refuse to function if you deny it...
I feel like "do you want to give this app your phone number?" falls under the former, though. Right there along with "do you want to give this app your location?", which is of course already something users have to allow.
[1] https://www.zdnet.com/article/play-store-identified-as-main-...
[2] https://www.vice.com/en/article/n7bbmz/the-fortnite-trial-is...
From here[1]:
> Remote control security risks
> XcodeGhost can be remotely controlled via commands sent by an attacker from a Command and control server through HTTP. This data is encrypted using the DES algorithm in ECB mode. Not only is this encryption mode known to be weak, the encryption keys can also be found using reverse engineering. An attacker could perform a man in the middle attack and transmit fake HTTP traffic to the device (to open a dialog box or open specific app for example).
> Read and write from clipboard
> XcodeGhost is also able, each time an infected app is launched, to store the data written in the iOS clipboard. The malware is also able to modify this data. This can be particularly dangerous if the user uses a password management app.
> Hijack opening specific URLs
> XcodeGhost is also able to open specific URLs when the infected app is launched. Since Apple iOS and OS X work with Inter-App Communication URL mechanism (e.g. 'whatsapp://', 'Facebook://', 'iTunes://'), the attacker can open any apps installed on the compromised phone or computer, in the case of an infected macOS application. Such mechanism could be harmful with password management apps or even on phishing websites.
> Stealing user device information
> When the infected app is launched, either by using an iPhone or the simulator inside Xcode, XcodeGhost will automatically collect device information.*
> Then the malware will encrypt those data and send it to a command and control server. The server differs from version to version of XcodeGhost; Palo Alto Networks was able to find three server URLs:
> http://init.crash-analytics.com, http://init.icloud-diagnostics.com, http://init.icloud-analysis.com
> The last domain was also used in the iOS malware KeyRaider.
[1] https://en.wikipedia.org/wiki/XcodeGhost#Behavior_on_infecte...
[2] https://blog.lookout.com/blog/2015/09/20/xcodeghost
[3] http://researchcenter.paloaltonetworks.com/2015/09/malware-x...
[4] https://arstechnica.com/information-technology/2015/09/apple...
[5] http://www.reuters.com/article/2015/09/20/us-apple-china-mal...
[6] http://www.nytimes.com/2015/09/21/business/apple-confirms-di...
And the 'remotely controlled via commands' section is meaningless - apps can't JIT so such C&C was simply turning flags on-and-off to go on different code paths.
Legislation like this forces Apple to actually maintain a good OS lest it be riddled with malware. They seem to be doing fine on macOS they can do the same for iOS.
0: https://www.cnbc.com/2021/05/19/apples-head-of-software-says...
https://support.apple.com/guide/mdm/security-privacy-payload...
All it does is force "choice" onto users further down the stack - users that don't know what they might be giving up when they install a third-party app store when trying to install "Fortnite" or even "Fortnite VBucks Generator Free iOS".