Apple's EU App Store Overhaul | Fees, Fines, and the Fight for DMA Compliance

Unpacking Apple's EU App Store Overhaul: Fees, Fines, and the Fight for DMA Compliance

Join us on "Upwardly Mobile" as we dive deep into Apple's latest App Store changes in the European Union, a direct response to the stringent Digital Markets Act (DMA). Faced with a hefty €500 million (about $570 million) penalty from the EU for "anti-steering" practices, Apple has introduced a complex new fee structure that's shaking up the mobile app ecosystem. What You'll Learn in This Episode:

• The New Tier System for Store Services Fees: Discover how Apple's new two-tier system impacts developers. Tier 1 offers basic App Store features for a 5 percent commission, while Tier 2 provides full access at a 13 percent commission. We'll discuss what features are missing from the cheaper tier, including automatic app updates and promotional tools.
• Introducing the Core Technology Commission (CTC): Understand Apple's new 5 percent commission on outside purchases made in apps distributed on the App Store. This fee is set to transition from the previous Core Technology Fee (CTF) by January 1, 2026, becoming a "single business model" for EU developers and applying to digital goods and services sold across the App Store and alternative marketplaces. The EU has previously ruled that the CTF was not "necessary and proportionate".
• The DMA's Impact and Anti-Steering Rules: We break down how the DMA forced Apple to allow developers more choices in app distribution and promotion, specifically ending prohibitions on "steering" users to cheaper alternatives outside the App Store. This comes after a US court order, stemming from the Epic Games lawsuit, also prevented Apple from taking commission on purchases made outside the App Store in the US.
• The "Malicious Compliance" Debate: We explore the significant criticism Apple faces for its DMA compliance, with many, including Epic Games CEO Tim Sweeney and Spotify, accusing them of "malicious compliance"—adhering to the letter but not the spirit of the law. Critics argue Apple's changes still create barriers to competition.
• Apple's Defense and Ongoing Scrutiny: Despite the criticism and fines, Apple maintains it has taken significant steps to open its ecosystem and is appealing the EU's penalty. The European Commission is currently assessing these new changes to determine if they are fully compliant with the DMA.

Don't miss this essential episode to understand the shifting landscape of app development and distribution in Europe!

Reading & Resources:

• Apple overhauls EU App Store rules following penalty (Link to The Verge article)
• Apple reveals complex system of App Store fees to avoid EU fine of 500 million euro (Link to CNBC article)
• Updates for apps in the European Union (Link to Apple Developer news)
• Apple's DMA developer support page and Compliance Report (Link to Apple's official DMA info)
• Alternative Terms Addendum for Apps in the EU and StoreKit External Purchase Link Entitlement Addendum for EU Apps (Links to Apple's legal terms)

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