Apple reveals how EU DMA compliance impacts developers
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EU developers have improved the ability sign up for Apple's updated terms, one-time exit clause, and new eligibility criteria that should address many of the issues.
After Apple announced how it would act under the European Union's Digital Markets Act, some called it malicious compliance. After meeting with developers and receiving much feedback, Apple made some changes to these rules a few days before the DMA went into effect.
According to information provided by Apple and updated documentation, three significant changes have been made to the terms to address developer concerns. It will be easier to create an alternative market and cancel the new contract if necessary.
The new rules created by DMA are not required by developers. The developer must agree and sign an addendum agreeing to the new rules for receiving Apple commissions.
Apple has eliminated the legal entity requirement that required each account attached to the company to sign an addendum to the contract. It is now controlled at the account level, allowing the company to manage multiple developer accounts with different rules on and off the App Store.
The main issue with Apple's new EU rules was the core technology levy, which will require developers to pay half a euro for every annual installation above the 1 million threshold. This rule could cause financial problems for apps like Widgetsmith, which may not be able to make enough money to cover a sudden $50,000 bill due to a surge in popularity.
Now, if a developer approaches the one million downloads mark, he has one chance to refuse the new contract. The developer can terminate the add-on and return to placing the application on the App Store with the usual 30% or 15% discount.
This one-time reservation can be activated at any time. However, if the developer signs the addition again, there will be no turning back.
Finally, Apple has made it easier for developers to create alternative app markets by not requiring a standby letter of credit in certain circumstances. If a developer account has been in existence for two years and has an established EU app production business with more than 1 million first year installs, the organization can open an alternative market without a standby letter of credit.
iOS 17.4 introduced the ability to run alternative app stores or download apps from outside the App Store. Earlier on Tuesday, Apple released iOS 17.4 to the general public.
