Apple Reveals New iPhone App Changes And Not Everyone’s Impressed

When the EU introduced the Digital Markets Act earlier this year, Apple changed how the App Store works in the 27 EU countries. But in June, the European Commission said that it believed Apple to be in breach of the DMA, specifying anti-steering rules. Now, Apple has responded with changes. As always, though these changes only apply to users in the EU, governments around the world are watching carefully and considering if they should enact similar legislation.

Anti-steering refers to whether or not app developers are able to link to the web in their apps to tell users about other ways they can pay. Developers want to be able to get users to pay outside the App Store, so they aren’t liable for Apple’s commission fees.

ForbesApple iPhone 16, iPhone 16 Pro Release Date: New Report Reveals Extraordinary StrategyBy David Phelan

When Apple updated the rules for users in the EU, linking out included strict requirements about how the link was included, and where the link would take them. In doing so this limited how easily users could pay for upgrades elsewhere, it’s considered.

With the new changes which Apple announced on August 8 in the drillly titled Updates to the StoreKit External Purchase Link Entitlement, many restrictions are removed. Apple says, “Developers can communicate and promote offers for purchases available at a destination of their choice. The destination can be an alternative app marketplace, another app, or a website, and it can be accessed outside the app or via a web view that appears in the app.”

So, promoting offers can now be done in a way that’s easier for users to access—though Apple specifies that links must not be used for ad tracking purposes.

And there’s another big change to something that was deemed many to be contentious: the Core Technology Fee. Apple’s view is that the App Store provides great value and needs to be kept secure for users, so Apple was charging the CTF on installs over a certain threshold.

With the new terms, which will go live this fall, developers can remain in the App Store without paying the CTF, which will apply to developers operating under alternative business terms available in the EU, such as in alternate app stores. Now, there will be a different fee structure. First, an Initial Acquisition Fee of 5% levied on what the customer buys in the 12 months from the initial install. Then there’s a Store Services Fee, which applies at various rates between 5% and 20% depending on which App Store you’re in and whether or not you qualify for the App Store Small Business Program.

Essentially, it boils down to a loosening of restrictions but two more fees, one initial one and one for continued use. Spotify shared a statement Tech Crunch “calling the plan ‘unacceptable’ and claiming Apple was once again disregarding ‘the fundamental requirements’ of the DMA. And Epic’s Tim Sweeney said on X, “Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.” Not everyone’s over joyed, then.

Expect more comments to stream in over the coming days.

ForbesiOS 17.6.1: Urgent iPhone Update Arrives Sooner Than Anyone GuessedBy David Phelan