Apple’s App Store has enjoyed a period of unchecked operation, allowing the company to reap significant revenue through commissions on purchases and in-app transactions. However, recent years have seen Apple facing mounting pressure to reform its practices. In compliance with various regulations, including the EU’s Digital Markets Act (DMA), Apple has made several changes, albeit often at the minimum required.
Epic Games CEO Tim Sweeney has publicly criticized Apple regarding its latest adjustments in the EU App Store. Under the DMA, Apple was mandated to alter its App Store practices significantly. Previously, developers were restricted to a single static URL in their applications, limiting their ability to promote offers and redirect users appropriately.
However, following the regulatory changes, these constraints have been lifted. Developers can now market their offers on various platforms, including other applications, external websites, and even third-party app stores. Additionally, they can incorporate promotions directly within their apps.
Despite these changes, Sweeney is dissatisfied due to Apple’s introduction of new fees. Apple has launched an “Initial Acquisition Fee” of 2% for new users and a tiered system for its Store Services. Depending on which features developers select, they may incur costs ranging from 5% to 13%.
Developers looking to minimize expenses can choose Store Services Tier 1, which, however, comes with limitations, such as slower app reviews. Apple asserts that the default for apps on the App Store in the EU is Store Services Tier 2. Sweeney argues that Apple undermines the usability of apps that promote external offers by blocking auto-updates, hampering search functionality, and restricting customer support and family sharing.
In essence, Apple appears to have complied with DMA requirements superficially while finding ways to counteract the intentions behind them. This behavior isn’t unexpected, given Apple’s history.