Apple Changes App Store to (Try to) Meet EU’s DMA Demands

Apple today announced major changes to its mobile App Store to meet its legal requirements under the Digital Markets Act (DMA), but only in the EU. And don’t worry, the new rules are even more convoluted than what it originally came up with.

“The European Commission has required Apple to make a series of additional changes under the Digital Markets Act,” the Apple Developer site explains. “We’re letting developers communicate and promote offers for purchase of digital goods or services available at a destination of their choice … [introducing] new business terms for those transactions … and Music streaming apps can [also] use these options.”

Apple also says it plans to move away from its controversial Core Technology Fee (CTF) in the UE to a single business model for all developers that includes an initial acquisition fee, a store services fee, and, for apps on what’s called the StoreKit External Purchase Link Entitlement (EU) Addendum, the Core Technology Commission (CTC). So … yeah, as complicated as ever. More problematically, critics say it’s as one-sided as ever, too.

“Apple’s new Digital Markets Act malicious compliance scheme is blatantly unlawful in both Europe and the United States and makes a mockery of fair competition in digital markets,” Epic Games CEO Tim Sweeney tweeted. “Apps with competing payments are not only taxed but commercially crippled in the App Store. Apple blocks auto-updates to these apps, cripples search for them, and blocks customer support and family sharing, and otherwise ensures that using these apps will be an intentionally miserable experience for users and a commercial failure for developers.”

Under the new rules, developers who use the App Store payment system would pay Apple a 20 percent processing fee on all transactions, or 13 percent for those in a small business program. Those who use outside payment systems would pay 5 to 15 percent.

The European Commission has not yet evaluated the changes, let alone approved them.

“As part of this assessment, the Commission considers it particularly important to obtain the views of market operators and interested third parties before deciding on next steps,” the Commission noted. “It will now assess these new business terms for DMA compliance.”

If Apple’s past behavior is any guide, the new terms are not in any way compliant with the law.

“In the spirit of always proposing a solution when raising a problem, here’s how it should work,” Mr. Sweeney continues. “The App Store provides all of its best features for all developers and apps. All developers are free to use Apple payments, developer payments, or any combination, however they want. And Apple only charges for its payment services, and doesn’t impose an Apple Tax on competing payment services or any other junk fees like its Core Technology Fee. The result? Apple and all developers live under a symbiotic relationship, as historically has been the case on operating systems like Windows and macOS. Everyone is incentivized to invest for maximum growth, and health is restored to the currently enshittified mobile store monopolies.”

Sounds wonderful. But good luck with that.