Would you like to receive notifications on latest updates of the following headlines?

EU: Apple Revamps App Store To Avert Large Penalties

POSTED ON August 9, 2024 •   TECHNOLOGY      BY Benedicta Bassey
Apple CEO Tim Cook/ Photo credit: Techcrunch

Apple has announced changes to its App Store after the European Union accused the iPhone maker of breaking the bloc’s landmark new digital rules.

The EU said the App Store terms prevented app developers from freely steering consumers to alternative ways to pay, making Apple the first-ever tech firm to face accusations of breaching a new law known as the Digital Markets Act (DMA).

Now Apple says there will be changes to comply with the DMA and address the findings of the European Commission, the EU’s powerful antitrust regulator.

At the time, Brussels said developers could only steer customers through a link in their app that redirected the user to a web page to conclude any contracts.

Regulators said Apple placed “several restrictions,” meaning app developers could not communicate, promote offers and conclude contracts through the channel of their choice.

From the autumn, Apple said developers in the EU “can communicate and promote offers for purchases” wherever they want.

But in late Thursday’s announcement, Apple said the changes mean developers will have a new fee structure for customers linking out of an app for offers and content.

It said, "For instance, developers will have to pay a five per cent fee on sales of digital goods and services made on any platform within a year of a user first installing an app with the ability to link out to a different channel, such as a website."

The restrictions therefore calls for the  tech titans to modify their platforms in accordance with EU rules, to avert large penalties.
The DMA demands the EU wrap up any probe within a year of its start.

The commission told AFP, "It will assess Apple’s eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers”.

The charges against Apple came after the commission launched investigations in March into Apple, Facebook owner Meta and Google under the DMA.

Meta also faced formal accusations of violating the DMA in July.
The DMA gives big tech a list of what they can and can’t do in business in a bid to increase competition in the digital sphere. For example, they must offer choice screens for web browsers and search engines to give users more options.

The law gives the EU the power to impose fines of up to 10 per cent of a company’s total global turnover. This can rise to up to 20 per cent for repeat offenders.

The Coalition for App Fairness, whose members include Swedish streaming giant Spotify and which has long called for Apple to open up its marketplace, dismissed the latest Apple announcement.

“With the introduction of yet another confusing, arbitrary, and expensive fee structure, Apple continues to evade compliance and make the digital landscape in Europe more complicated for developers and more costly for consumers,” it said.

Apple is not the only company targeted by the DMA. Google parent Alphabet, Amazon, Meta, Microsoft and TikTok owner ByteDance must also comply with the DMA.

READ ALSO
Meta Cracks Down on Fake Profiles: Over 10 Million Accounts Removed
BY Abiodun Saheed Omodara July 16, 2025 0

Meta, the parent organization of Facebook, has intensified its initiatives to enhance the platform's...

READ ALSO
NCC, REA Forge Partnership to Enhance Rural Connectivity and Energy Solutions
BY Abiodun Saheed Omodara July 3, 2025 0

The Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have officia...

READ ALSO
Microsoft Cuts 4% of Workforce Amid AI Investment Strategy
BY Abiodun Saheed Omodara July 2, 2025 0

Microsoft is set to lay off nearly 4% of its workforce, impacting around 9,000 employees across diff...

READ ALSO
Elon Musk's Robotaxi Ambitions Take Off in Austin amid Controversy
BY Abiodun Saheed Omodara June 22, 2025 0

Tesla is set to start its robotaxi service in Austin on Sunday, a move that supporters of Elon Musk...

READ ALSO
Tanzania,  Nigeria Lead Africa in Rising Fraud Rates- Report
BY Abiodun Saheed Omodara June 19, 2025 0

Tanzania and Nigeria have emerged as the leading countries in Africa for higher fraud rates, accordi...

READ ALSO
OpenAI Secures $200m Contract with US Department of Defense
BY Abiodun Saheed Omodara June 17, 2025 0

The US Department of Defense on Monday awarded OpenAI a $200 million contract to utilize generative...

READ ALSO
60,000 Nigerians Abroad Register on Diaspora Data Mapping Portal
BY Abiodun Saheed Omodara June 3, 2025 0

Approximately 60,000 Nigerians residing overseas have registered on the Diaspora Data Mapping Portal...

READ ALSO
Federal Ministry Unveils Digital Village to Bridge Digital Divide in Abuja Community
BY Abiodun Saheed Omodara May 30, 2025 0

The Federal Ministry of Communications, Innovation and Digital Economy has launched a Digital Villag...

OUR CHANNELS:

NBS Reports Surge in Cooking Gas and Kerosene Prices across Nigeria
BY Abiodun Saheed Omodara August 1, 2025 0

The National Bureau of Statistics (NBS) has announced a rise in the average costs of cooking gas and...


FG Pledges to End Tertiary Education Strikes, Launches Diaspora Bridge Initiative
BY Abiodun Saheed Omodara August 1, 2025 0

The Minister of Education, Dr. Tunji Alausa, stated that the Federal Government, led by President Bo...


Two Convicted of Poisoning Katsina Commissioner
BY Abiodun Saheed Omodara August 1, 2025 0

A Katsina High Court has condemned two ex-domestic workers to death by hanging for the murder of Rab...


Former Super Falcons Star Calls out FG for Neglecting Women’s Football Pioneers
BY Abiodun Saheed Omodara July 31, 2025 0

Patience Avre Odeli, a former striker for the Super Falcons, has accused past Nigerian governments a...


Super Eagles B Gear Up for Final Friendly Against Zanzibar Ahead of CHAN 2024
BY Abiodun Saheed Omodara August 1, 2025 0

The Super Eagles B are set to play the Zanzibar national team today in their second and final friend...


FG to Raise N796bn Annually from New 5% Petrol Surcharge
BY Abiodun Saheed Omodara August 1, 2025 0

The Federal Government is expected to generate N796bn annually from the implementation of a five per...


No Defection Required: ADC Grants Peter Obi and El-Rufai Freedom to Stay with Current Parties
BY Abiodun Saheed Omodara August 1, 2025 0

The newly established African Democratic Congress (ADC) has announced that the Labour Party's presid...


22 Lives Lost Amid Protests Against Fuel Price Hike in Angola
BY Abiodun Saheed Omodara August 1, 2025 0

Two days of violence and looting in Angola during a demonstration against a fuel price increase resu...


Joint US-India Space Mission: NISAR Satellite to Predict Natural Disasters
BY Abiodun Saheed Omodara July 31, 2025 0

A powerful new radar satellite, developed in collaboration between the United States and India, was...


Business Owners in Abuja Raise Alarm over Rising Operational Costs and Falling Sales
BY Abiodun Saheed Omodara August 1, 2025 0

Business owners in the Federal Capital Territory have voiced their worries about the escalating cost...


More Articles

Load more...

Menu