Apple Modifies Proposed Changes to Comply With New EU Rules After Criticism

Apple has modified some of its proposals to comply with landmark EU tech rules after criticism from app developers, including dropping a demand that those who want to create alternative app marketplaces must have a stand-by letter of credit.

The company and five other tech giants have to comply by March 7 with the Digital Markets Act (DMA), which sets out a list of dos and don’ts aimed at reining in their power and creating a level playing field for rivals and more choices for users.

Apple had in January announced proposals which allow software developers to distribute their apps to users in the European Union outside of Apple’s own App Store, as well as new fees and conditions.

The iPhone maker said one change will now allow developers to sign up to the new terms announced two months ago at the developer account level.

“We’ve removed the corporate entity requirement that the Addendum must be signed by each membership that controls, is controlled by, or is under control with another membership,” Apple said on its website late Tuesday.

It also created a one-time option for developers to terminate the Addendum under certain circumstances and switch back to Apple’s standard business terms for their EU apps.

Lastly, it scrapped a demand for a letter of credit from developers who want to create a rival app marketplace and introduced two eligibility criteria.

“A developer may operate an alternative app marketplace if their account has been in existence for two years and they have an established app business in the EU with more than 1 million First Annual Installs,” Apple said.

© Thomson Reuters 2024

Affiliate links may be automatically generated – see our ethics statement for details.