Apple's App Store Changes in EU Draw Criticism from Developers

BigGo Editorial Team
Apple's App Store Changes in EU Draw Criticism from Developers

Apple has announced changes to its App Store policies in the European Union (EU) in response to accusations of violating the Digital Markets Act (DMA), but the modifications have drawn criticism from high-profile developers.

Key points:

  • Apple will allow EU developers to promote offers and link to external purchasing options starting this fall.
  • A new fee structure includes a 5% store services fee on sales made within a year of app installation, even for off-platform purchases.
  • Developers like Epic Games and Spotify have called the changes confusing and potentially illegal.
Tim Cook, chief executive officer of Apple, addressing the new App Store policy changes amid developer criticism
Tim Cook, chief executive officer of Apple, addressing the new App Store policy changes amid developer criticism

Background

The European Commission accused Apple of breaching the DMA by restricting developers from steering users to alternative payment methods. In response, Apple announced policy changes to comply with EU regulations.

New App Store Policies

Under the new rules, developers in the EU can:

  • Communicate and promote offers for purchases outside their apps
  • Add links allowing users to make purchases on external platforms
  • Use alternative app marketplaces

However, Apple introduced a new fee structure that has raised concerns:

  • 20% commission for apps available only on the App Store
  • 10% plus additional fees for apps on third-party storefronts
  • 5% store services fee on purchases made within one year of app installation, regardless of platform

Developer Backlash

High-profile developers have criticized Apple's changes:

  1. Tim Sweeney, CEO of Epic Games, called it malicious compliance and an illegal new 15% junk fee.

  2. Spotify spokesperson Jeanne Moran stated the proposal is deliberately confusing and disregards DMA requirements.

Regulatory Response

The European Commission is assessing Apple's changes and considering market feedback. The DMA allows for fines of up to 10% of a company's global turnover for non-compliance, which could increase to 20% for repeat offenders.

Conclusion

As Apple navigates the new regulatory landscape in the EU, its latest App Store policy changes have sparked controversy. The tech giant must balance compliance with maintaining its business model, while developers and regulators scrutinize its every move. The coming months will likely see continued debate and potential further adjustments to Apple's policies in the European market.