Apple bow to EU tension over App Store anti-steering techniques

Apple has introduced new fees for app developers in Europe
Last updated 44 minutes agoApple revised its App Store requirements and fees for developers in Europe following pressure from EU. The European Union published a preliminary conclusion in late June 2024 that Apple had violated the Digital Markets Act. The EU stated that Apple had not yet fully complied with the DMA rules governing steering, which allows developers to communicate offers to their users. Apple has now announced a revision of its terms for developers within the region. This includes a lift on restrictions regarding promoting offers. Apple will no longer require developers to use templates or approved wording. App makers will also be able to direct users to other channels. They can now link users to other channels, as well as letting them know about specific offers on the app developer’s site. This means that they can promote their services on alternative marketplaces or in other apps. Apple says developers will be free to design promotional offers in the app without any restrictions or requirements. There can also be an unlimited number of links within the app. According to the new developer documentation, the links can either “be tapped or clicked to take the user to their destination.” A disclosure sheet will still remind users that they are purchasing from the developer and not Apple. Users can now turn off the disclosure sheet. Apple’s new fee structure Apple has updated its steering conditions and changed the fees for developers who direct users to make purchases using these links. Apple previously charged a reduced fee plus its controversial Core Technology Charge for the use its services. Apple has not changed the Core Technology Fee, but it does stress that it will only apply to less than 1 percent of iOS apps. Two other charges will replace the reduced commission. The first charge is an Initial Acquiring Fee. Apple will charge developers 5 percent of any digital goods or services purchased by a new user of an app during the first year after the initial download if the app has links that direct users away from the App Store. Apple notes that this fee does not apply to customers who had an initial download before you made your app available to link out. Apple claims that this charge reflects the fact that it is the App store that introduces users into apps. Apple’s second new fee is a Store Services Charge, which it says reflects the value that its features like app distribution bring. The Store Services Fee is 10% of the sale price of digital goods or services made on any platform for the first 12 months after the installation of the app with links to purchase. App installation includes both reinstalls (after a user uninstalls and then changes their mind) or updates. The 12-month period begins again at the moment the app is updated or reinstalled. This is the agreement for new developers. However, those who already work under Apple’s current terms in the EU can choose to adopt the new linking options. Store Services Fees will increase to 20% if they do. Apple claims that the Store Services fee is reduced for developers who are part of the Small Business Program and for subscriptions after the first year. Developers who sign up for the terms today will pay a reduced fee of 5%. Developers already on existing terms will pay 7%. The company has not provided any figures, but claims that it will cover most developers. The company has stated that these fees do not apply to “auto-renewals or sales made pursuant your use of an alternate PSP [Payment Service Provider] system or Apple’s In App Purchase system.” Apple will release documentation and details about the new fees to developers when they go into effect. Apple will not release an iOS update until a time that is yet to be determined in the fall. Users won’t notice any changes until then. Apple claims that the changes will result in lower charges for developers who link out via the App Store. The developers will also have more flexibility in terms of where and what they link to. The changes are a result of the EU’s preliminary findings that Apple had not met the DMA’s steering requirements. Apple can also argue against the findings of this preliminary report. The European Commission will decide if Apple is to be fined for non-compliance after hearing Apple’s arguments. The EU fined Apple $2 billion for allegedly favoring Apple Music over Spotify, which was more popular.