Apple will allow alternative app stores to be used on its devices purchased in the EU from March.
Currently, anyone with an iPhone can only download apps from the firm's own App Store.
Apple has always maintained that its rules protect users' security.
But it has been accused of creating a monopoly, giving customers and developers no choice but to go through its own channels, and charging developers up to 30% commission.
"The changes we're announcing today comply with the Digital Markets Act's requirements in the European Union, while helping to protect EU users from the unavoidable increased privacy and security threats this regulation brings," Apple said.
The US tech giant sells premium-priced products, with the promise that they offer an extra layer of security.
Android apps can already come from a wider variety of stores. However, as a result, malware is far more common on Android devices than Apple ones.
The purpose of both the new EU rules and UK proposals are to try to maintain open and competitive markets where lots of companies can successfully operate alongside each other.
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