In a move likely to reshape the European app development landscape, Apple has tweaked its App Store policies for the European Union (EU). These new regulations grant app developers more flexibility in how they interact with their customers. Apple App Store EU

Previously, Apple’s App Store policy strictly prohibited developers from steering users outside their apps for any reason. If a developer wanted a user to sign up for a subscription or make a purchase, it had to happen entirely within the confines of the app itself. The European Commission (EC) saw this as an antitrust violation.

Facing pressure from the EC, Apple has conceded some ground. Let’s delve into the key changes to Apple’s App Store policy in the EU:

Loosening the Reins: What Developers Can Now Do

• Direct Communication: Developers can now directly communicate with app users and promote deals and offers within the app itself. This eliminates the need to rely solely on their websites to convert users.
• Bye-Bye Link-Outs: Apple’s previous policy only allowed developers to use ‘link-outs’ to redirect users to web pages for purchases or sign-ups. This practice is being phased out in favor of more direct communication channels within the app.

While these changes offer more freedom to developers, Apple isn’t loosening its grip on the financial side of things entirely.

Apple’s New Fees: A Double-Edged Sword?

• Acquisition Fee: A new 5% fee applies to any new users acquired within the app. In essence, Apple takes a cut from the very first transaction a new user makes.
• Store Services Fee: In addition to the acquisition fee, there’s also a 10% store services fee that applies to any in-app purchases made by a user within one year of installing the app. Imagine it as a lingering commission Apple takes on any revenue generated by a user you acquire through your app.

These new fees replace the previous reduced commission structure for digital goods and services sold through the App Store. The EC had previously criticized these commissions as excessive.

So, is this a win for developers?

It’s a mixed bag. On the one hand, they have more freedom to interact with users and potentially convert them within the app. On the other hand, Apple is taking a bigger chunk of the pie through these new fees.

What it Means for App Users

The impact on app users remains to be seen. While some developers might pass on the cost of these fees to users through higher prices, others might absorb the cost to stay competitive. Ultimately, it’s a balancing act for developers, and how it plays out will depend on individual app strategies.

One thing’s for sure: Apple’s policy update in the EU is a significant development with far-reaching consequences. We’ll be following this story closely to see how it unfolds. Apple App Store EU

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