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Apple revises EU app store guidelines due to regulatory pressure

Apple revises EU app store guidelines due to regulatory pressure

Apple has changed its policies in the European Union and now allows app developers to communicate with customers outside of their apps. The change follows a charge from the European Commission in June that accused the tech giant of violating the bloc’s strict digital market rules.

According to Reuters, the European Commission had previously criticized Apple’s restrictive terms and conditions that largely prohibited app developers from using “link-outs,” a practice that allowed developers to insert a link into their apps that directed users to an external web page where contracts could be concluded. However, the new policy change allows developers to not only interact directly with customers in their apps, but also promote offers available on different platforms, not just on their own websites.

While this move represents a step toward greater flexibility for developers, Apple has also introduced two new fees in conjunction with the policy change. According to Reuters, the first is a 5% acquisition fee for new users and the second is a 10% store service fee that applies to all sales made by app users across all platforms within the first 12 months of installing the app. These fees replace the reduced commission previously charged on all digital goods and services sold through the App Store.

Related: Apple’s AI features on EU iPhones face delays due to regulations

Currently, Apple’s fee structure includes a core technology fee on a small portion of apps, a reduced commission on digital goods and services, and an optional fee for payment and commerce services. The introduction of the new fees comes in response to the Commission’s previous criticism that Apple’s fees for customer acquisition through the App Store exceed what is necessary for such services.

The European Commission’s action against Apple is the first measure under the Digital Markets Act (DMA), a landmark regulation designed to curb the dominance of big tech companies. Violations of the DMA can lead to fines of up to 10% of a company’s annual global turnover. Apple has acknowledged that the latest policy changes are a direct response to ongoing discussions with the European Commission following the June announcements.

This development underscores the increasing scrutiny that major technology companies are facing in Europe as regulators seek to ensure fair competition and prevent monopolistic practices. As Apple implements these new rules, the technology industry will be closely watching how these changes affect developers and consumers in the European market.

Source: Reuters

By Olivia

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