Apple Revises EU App Store Policies Amid Regulatory Pressure

Apple has amended its policies in the European Union, allowing app developers to communicate with customers outside of their apps. This change follows a charge by the European Commission in June, which accused the tech giant of violating the bloc’s stringent digital market regulations.

Per Reuters, the European Commission had previously criticized Apple’s restrictive business terms, which largely limited app developers to using “link-outs.” This practice allowed developers to include a link in their apps, directing users to an external webpage where contracts could be finalized. However, the new policy change permits developers to not only engage directly with customers within their apps but also to promote offers that are available across various platforms, rather than just on their own websites.

While this move marks a step towards greater flexibility for developers, Apple has also introduced two new fees in conjunction with the policy change. According to Reuters, the first is a 5% acquisition fee for new users, and the second is a 10% store services fee, which applies to any sales made by app users on any platform within the first 12 months of installing the app. These fees will replace the previously charged reduced commission for all digital goods and services sold through the App Store.

Related: Apple’s AI Features Face Delays on EU iPhones Due to Regulations

Currently, Apple’s fee structure includes a core technology fee for a small fraction of apps, a reduced commission for digital goods and services, and an optional fee for payments and commerce services. The introduction of the new fees comes in response to the Commission’s earlier criticism that Apple’s fees for facilitating customer acquisition through the App Store exceeded what was necessary for such services.

The European Commission’s action against Apple is the first enforcement under the Digital Markets Act (DMA), a landmark regulation designed to curb the dominance of major tech companies. Violations of the DMA can lead to penalties as severe as 10% of a company’s global annual turnover. Apple has acknowledged that the recent policy changes are a direct response to ongoing discussions with the European Commission following the June announcements.

This development underscores the increasing scrutiny that Big Tech companies face in Europe, as regulators seek to ensure fair competition and prevent monopolistic practices. As Apple navigates these new regulations, the tech industry will be closely watching how these changes impact both developers and consumers in the European market.

Source: Reuters