Apple bows to EU pressure over App Store anti-steering practices

AppleInsider

Apple has revised its App Store fees and requirements for developers in Europe, following pressure from the EU.

Apple has introduced new fees and conditions for app developers in the EU

In late June 2024, the European Union announced a preliminary finding that said Apple was in breach of the Digital Markets Act (DMA). Specifically, the EU said that despite its commitments, Apple was not yet fully complying with the DMA's rules regarding steering, the ability for developers to communicate offers to users.

Now Apple has announced a revision to its terms for developers in the region, which includes a lifting of its restrictions on promoting offers. From the fall, developers will no longer be required to follow any approved wording or templates, and Apple will also no longer limit what app makers can direct users to.

So as well as informing users of particular offers that are available on the app developer's own site, they can now link to other channels. That means promoting their services that are on alternative marketplaces, included in other firms' websites, or in other apps.

Apple says that developers will also be freed of constraints or requirements over the design of their promotional offers within the app. Plus, there can be any number of links throughout the app, and new developer documentation says that the links can "be tapped, clicked, or scanned, to take users to their destination."

Users will still be prompted that they are buying from the developer instead of Apple, through a disclosure sheet. However, that sheet can now be turned off by users.

New fee structure

As part of updating the steering conditions, Apple has also changed its fees specifically for developers directing users to purchase using these links out. Previously, Apple charged a reduced commission, plus its controversial Core Technology Fee for the use of its services.

That Core Technology Fee remains, although Apple stresses that it will apply to less than 1% of iOS apps. The reduced commission, though, is being replaced by two other charges.

The first is an Initial Acquisition Fee. Apple will charge developers 5% of any purchase of services or digital goods made by a new app user during the first year following the initial download, if the app uses links to direct users out of the App Store.

"This fee does not apply to transactions made by customers that had an initial install before you make your app available with the entitlement profile to link out," notes Apple.

This is a charge that Apple says reflects how it is the App Store that introduces users to apps. The company's second new charge is a Store Services Fee which the company says reflects the value of its features such as app distribution.

The Store Services Fee will be 10% on the sale of digital goods and services that are made on any platform, for 12 months following the installation of an app that has links out for purchasing.

Significantly, the definition of an app installation includes both re-installs -- so after a user has uninstalled and then changed their mind -- or the app has been updated. The 12-month period starts again from the point the app is re-installed or updated.

These are the terms for new developers but ones already working under Apple's existing terms within the EU, can choose to take on the new linking options. If they do, the Store Services Fee is increased to 20%.

Apple says, though, that there is a reduced rate of for the Store Services Fee which apples to developers on the company's Small Business Program, and "subscriptions after their first year." For developers signing up to the terms now, that reduced fee is 5%, while for developers already on the existing terms, it is 7%.

The company claims that this will cover the majority of developers, but it has not given any figures.

It has said that these fees "do not apply to auto-renewals of subscriptions entered into previously, or to sales made pursuant to your use of an alternative PSP [Payment Service Provider] or Apple's In-App Purchase system."

When the new fees come into effect

Apple is now releasing details of the new terms to developers, along with documentation. Users won't see any differences until an unspecified time in the fall, when Apple will incorporate the changes in an iOS update.

According to Apple, the changes will mean lower charges for developers linking out through the App Store. It also means that they will have much greater flexibility over what and where they link to.

The changes follow the EU's preliminary report saying that Apple has failed to comply with the DMA's steering requirements. As well as these changes to its terms, Apple has the opportunity to make a case arguing against this finding.

Following Apple's arguments, the European Commission will decide whether or not to fine Apple for non-compliance. The EU has previously fined the company $2 billion over allegedly favoring its own Apple Music over the more successful Spotify.



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Afarstar

 “The EU has previously fined the company $2 billion over allegedly favoring its own Apple Music over the more successful Spotify.”

More EU nonsense. Spotify is more successful in spite of Apple promoting Apple Music. I live in UK and so glad we voted Brexit. 

foregoneconclusion

There was only a single year where Spotify allowed users to purchase a subscription through the App Store at the same time that Apple Music was a competitor. All the other years (both before and after Apple Music launched) involved Spotify preferring to only offer the free ad-supported version through the App Store. And if you look at that single year in question, it was before streaming services really took off in terms of customer base. Spotify was still relatively tiny at that point. But the EU thinks that single year is worth a $2 billion fine.

jungmark

I hope Apple thinks about pulling out of the EU is this BS gets any more draconian. 

Afarstar

jungmark said:

I hope Apple thinks about pulling out of the EU is this BS gets any more draconian. 

Too big a market unfortunately……and their Apple users are going to be very pissed off when they realise they can’t get Apple Intelligence on mobile devices. 

igorsky

Afarstar said:

jungmark said:

I hope Apple thinks about pulling out of the EU is this BS gets any more draconian. 

Too big a market unfortunately……and their Apple users are going to be very pissed off when they realise they can’t get Apple Intelligence on mobile devices. 

Not as big as everyone thinks. EU proper accounts for 7% of overall sales. Pretty soon it’s worth comparing those sales to EU’s fines. 

jido

Complain all you want about the fines, I envy the EU users who have access to more software than I do. 

spheric

Afarstar said:

jungmark said:

I hope Apple thinks about pulling out of the EU is this BS gets any more draconian. 

Too big a market unfortunately……and their Apple users are going to be very pissed off when they realise they can’t get Apple Intelligence on mobile devices. 

Apple users in Europe are quite aware of this, but we do prefer the protection of our personal info over a gung-ho all-in „let‘s go — whoops we didn’t think of that let’s see how to fix it“ attitude so prevalent in American tech. 

beowulfschmidt

Short of turning over it's assets and business to an EU company, no matter what Apple does, it won't be enough for the EU.  They're being punished for being Apple, and for not kissing the EU's ass.

avon b7

beowulfschmidt said:

Short of turning over it's assets and business to an EU company, no matter what Apple does, it won't be enough for the EU.  They're being punished for being Apple, and for not kissing the EU's ass.

They are being hauled over the coals for inhibiting competition and then not complying with legislation, and now we'll have to see how the EU evaluates the newest proposals.

They are free to pay the fines and leave the market but if they stay they will have to comply with the legislation. 

nubus

beowulfschmidt said:

Short of turning over it's assets and business to an EU company, no matter what Apple does, it won't be enough for the EU.  They're being punished for being Apple, and for not kissing the EU's ass.

Apple is kissing ass to the communists in China, force-installing gov apps in Russia, and disabling privacy/Facetime on all devices in UAE. Cook will do what it takes. But EU asking for a common charger... Apple signed and did nothing in 15 years. Selling chargers was more important than avoiding e-waste.

Agree with @"avon b7" that Apple can either leave EU or follow the rules.

spheric

nubus said:

But EU asking for a common charger... Apple signed and did nothing in 15 years. Selling chargers was more important than avoiding e-waste.

Their chargers were compatible with literally every USB-chargeable device, just like their phones charge off literally every USB charger in existence. It’s pretty difficult to make the case that they wanted to sell chargers. The Lightning cables were the only difference, and they weren’t the focus of the European studies on e-waste that led to the suggestion of a common standard.

The standard called for micro-USB for the longest time, which really is the shittiest and most fragile and annoying connector out of the dozen or so that comprise the „universal“ USB standard. 

MacBooks have charged via USB-C since the 2015 MacBook. 

beowulfschmidt

avon b7 said:

beowulfschmidt said:

Short of turning over it's assets and business to an EU company, no matter what Apple does, it won't be enough for the EU.  They're being punished for being Apple, and for not kissing the EU's ass.

They are being hauled over the coals for inhibiting competition and then not complying with legislation, and now we'll have to see how the EU evaluates the newest proposals.

They are free to pay the fines and leave the market but if they stay they will have to comply with the legislation. 

"Not complying with legislation" doesn't refute anything I said.

avon b7

beowulfschmidt said:

avon b7 said:

beowulfschmidt said:

Short of turning over it's assets and business to an EU company, no matter what Apple does, it won't be enough for the EU.  They're being punished for being Apple, and for not kissing the EU's ass.

They are being hauled over the coals for inhibiting competition and then not complying with legislation, and now we'll have to see how the EU evaluates the newest proposals.

They are free to pay the fines and leave the market but if they stay they will have to comply with the legislation. 

"Not complying with legislation" doesn't refute anything I said.

It does refute it. Apple is being looked at for non-compliance, not because "it's Apple" and not kissing anything".