Apple Adapts to EU Tech Rules Following Criticism

Apple adjusts its proposals in response to app developer criticism, dropping controversial requirements and introducing modifications to align with EU tech rules under the Digital Markets Act (DMA).

Gobind Arora
Published on: 7 March 2024 5:50 AM GMT
Apple Adapts to EU Tech Rules Following Criticism
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Apple (PC- Social Media)

In a bid to align with the Digital Markets Act (DMA) set by the European Union (EU), Apple has made significant adjustments to its initial proposals, addressing concerns raised by app developers. The company's move comes as part of its commitment to fostering a more competitive landscape and offering increased choices for users.

## The Background

Apple had initially unveiled proposals in January, outlining changes that would enable software developers to distribute their apps to users within the EU independently of Apple's App Store. Additionally, new fees and conditions were introduced to comply with the DMA, which outlines guidelines for tech giants to curb their power and establish a fair environment for competitors.

## Responding to Criticism

Criticism from app developers prompted Apple to reevaluate its proposals. Notably, the company dropped a contentious requirement that demanded creators of alternative app marketplaces to possess a stand-by letter of credit. This move reflects Apple's responsiveness to the concerns of the developer community and its willingness to adapt.

## Key Modifications

Apple's latest announcement highlights several modifications aimed at fostering a more inclusive environment for developers:

1. **Developer Account Level Sign-Up:** Apple now allows developers to sign up for the new terms at the developer account level, simplifying the onboarding process.

2. **Corporate Entity Requirement Removal:** The company eliminated the demand for the Addendum to be signed by each membership that controls, is controlled by, or is under control with another membership. This streamlines the legal processes for developers.

3. **Termination Option:** A one-time option has been introduced, allowing developers to terminate the Addendum under specific circumstances and revert to Apple's standard business terms for their EU apps.

4. **Letter of Credit Scrapped:** The requirement for a letter of credit from developers aspiring to create rival app marketplaces has been scrapped. Instead, two eligibility criteria have been introduced.

## Eligibility Criteria

Apple outlined the conditions for developers looking to operate an alternative app marketplace:

- The developer's account must have been in existence for two years.

- An established app business in the EU with more than 1 million First Annual Installs is required.

## Looking Ahead

As the March 7 deadline for compliance with the DMA approaches, Apple's proactive adjustments demonstrate its commitment to navigating the evolving regulatory landscape while prioritizing collaboration with the developer community. These changes not only address immediate concerns but also pave the way for a more cooperative and dynamic relationship between Apple and app developers in the EU.

Gobind Arora

Gobind Arora

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