Apple is Slowly Making App Store Concessions in the EU

Apple conceded to EU antitrust regulators publicly on one point of contention with its App Store policies. But the consumer electronics giant also quietly made another App Store policy change, as it works to slowly step back from the cliff it created for itself with its Digital Markets Act (DMA) compliance non-compliance.

First, the public concession.

As you may recall, the European Commission (EC) in early March fined Apple €1.8 billion for preventing rival music streaming services like Spotify from telling their own customers about alternative—and less expensive—payment methods than they can offer through the App Store.

At the time, Apple engaged in its usual self-righteous sputtering and pledged to appeal the order. But on Friday, it appeared to back down, explaining that it will now allow rival music streaming services to create in-app links to their websites, where users will find cheaper ways to pay. Apple will also let these apps “invite users to provide their email address for the express purpose of sending them a link to the developer’s website to purchase digital music content or services.”

That sounds like a slam dunk, but there are two caveats: The change applies only to the EU, of course. And Apple said that it would now charge a 27 percent fee on any purchases made outside of apps, which is yet another DMA violation, as it specifically mandates that app store gatekeepers allow developers to “communicate freely” with their own users.

An understandably outraged Spotify called on the EU to use its legal power to punish Apple for this new example of DMA non-compliance.

“Following the law is not optional, but Apple continues to defy that decision,” a Spotify statement reads. “Effective April 6th, the [European] Commission can start non-compliance proceedings and impose daily fines. It’s time for decisive action to once and for all give consumers real choice.”

More quietly, Apple also updated its App Review Guidelines to accommodate a separate DMA requirement that it allow the developers of emulator apps, like those for retro video game consoles, to support the downloading of game titles.

“Apps may offer certain software that is not embedded in the binary, specifically HTML5 mini apps and mini-games, streaming games, chatbots, and plugins,” Apple’s rules now read. “Additionally, retro game console emulator apps can offer to download games.” These apps must use in-app purchase mechanisms and follow local copyright laws, Apple also notes.

And perhaps because this issue came up in the DOJ’s recent antitrust lawsuit against Apple—the agency refers to these types of apps as “super apps”—Apple is making this change worldwide. So it doesn’t apply only within the EU.