Apple has updated its App Store policies in response to an EU investigation regarding its adherence to the Digital Markets Act (DMA).
On Thursday, August 8, Apple announced changes to its App Store guidelines in the European Union. These updates permit developers to provide information about and promote offers on external app marketplaces or websites, aligning with the EU’s new competition regulations.
Under the new policies, developers can advertise alternative offers within their apps, including subscription prices available both within and outside the app. Apple now allows developers to include links that can be “tapped, clicked, or scanned” to direct customers to these external offers.
These changes, which are scheduled to take effect in the autumn, follow a June announcement by the European Commission that Apple was violating the DMA.
The EU’s digital competition regulations stipulate that iOS developers should be able to inform customers about more affordable offers and direct them to those alternatives. However, the EU Commission found that Apple’s existing terms did not permit developers to freely guide customers by providing pricing information for offers outside the App Store.
“Steering is key to ensure that app developers are less dependent on gatekeepers’ app stores and for consumers to be aware of better offers,” stated Margrethe Vestager, the EU’s executive vice president for competition, in a June statement.
Apple Faces EU Non-Compliance Investigation
The Commission also initiated an investigation into Apple’s contractual terms for app developers. This includes examining its fee structures, the process of installing alternative app stores on iPhones, and the criteria for developers to offer alternative stores or distribute apps via the web.
The latest policy updates include a revised fee structure. Apple now imposes an initial acquisition fee of 5% and a store services fee of 10% on digital goods sold within 12 months of installation. Apple claims these fees reflect “the value the App Store provides when connecting developers with customers in the EU” and the ongoing services offered.
Designated as a “gatekeeper” under the DMA, Apple is required to comply fully with the new competition rules by March 2024. The act aims to prevent large tech companies from imposing unfair conditions on businesses.
If a gatekeeper violates the act, the Commission can levy fines of up to 10% of the company’s global revenue, increasing to 20% for repeated violations.
In response to Apple’s policy changes, a Spotify spokesperson stated that the music streaming service is “currently assessing Apple’s deliberately confusing proposal,” arguing that the app store fees do not comply with the DMA requirements.
“The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines, and enforce the DMA,” Spotify said in a statement.
