Apple's App Store rules in the European Union are once again under scrutiny, with the tech giant making significant changes to address its ongoing disagreements with the Commission over business terms and alternative distribution. The company's latest updates, effective October 1st, aim to provide more flexibility for developers while also ensuring compliance with the Digital Markets Act (DMA).
One of the key changes is the introduction of a single set of business terms for all developers, which includes a 26% commission for App Store apps using Apple's in-app purchase system and a 20% fee for those using alternate payment providers. This move is seen as a response to the Commission's findings last year that Apple's 'anti-steering' practices violated the DMA. Developers must also pay a 15% commission on purchases that link out of the app, with reduced rates for those in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program.
A notable aspect of these updates is the allowance for developers to offer both in-app purchases and alternative payment systems in the EU. However, this comes with a 12-month commitment to maintain the chosen payment options, ensuring user consistency and clarity. Apple also imposes a 5% Core Technology Commission on digital transactions in apps distributed on third-party app stores and the web, marking a departure from its previous acquisition and store services fees.
Web distribution is now limited to the EU, with stringent eligibility requirements for third-party app marketplaces, such as being a publicly traded company or undergoing a financial audit. This move is likely a strategic decision to maintain control over the App Store ecosystem and protect its market position.
The updates also include enhanced child safety features, prohibiting links to external websites for transaction completion in kids' apps and restricting App Store apps from linking to external websites for purchases if the user is under 13. For users under 18, parental or guardian permission is required when using alternative payment methods inside App Store apps.
Apple's willingness to adapt its App Store rules in the EU, despite its criticisms of the DMA, demonstrates a pragmatic approach to regulatory compliance. The company's ability to balance developer needs with regulatory requirements is crucial for maintaining its position as a dominant player in the app distribution market. However, the ongoing scrutiny and potential for further regulatory interventions highlight the challenges Apple faces in navigating the complex landscape of digital markets in the EU.
