Apple’s new EU App Store terms face backlash from game and app developer groups

• Apple’s new 5% Core Technology Commission on alternative distribution is also facing criticism.
• The groups say Apple’s alternative distribution requirements still leave it with significant gatekeeping power.
• The coalition asserts that accepting Apple’s terms would effectively rewrite the DMA.

A coalition of 18 organisations representing app developers and digital businesses has criticised Apple’s new EU App Store terms, arguing they still fail to comply with the Digital Markets Act (DMA).

A joint open letter signed by the European Game Developer Federation (EGDF) alongside the Coalition for App Fairness and 16 other organisations expressed their "profound disappointment" with the EC's "apparent endorsement" of the new terms without consulting affected businesses or users.

Apple said its changes, announced on August 18th, followed “close collaboration with the European Commission” and that they resolve its disagreements with the Commission over business terms and alternative distribution.

However, the European Commission has yet to formally comment on the apparent deal, raising questions over what, if anything, has officially been agreed.

Fees remain

The letter maintains that Apple’s new 15% fee for steering conflicts with Article 5(4) of the DMA, which requires gatekeepers to allow developers to communicate and promote offers to their users and conclude contracts with them free of charge.

The groups also object to Apple replacing its Core Technology Fee with a 5% Core Technology Commission on transactions in apps distributed outside the App Store.

Moreover, they assert that the permanent charge could prevent alternative app stores and distribution channels from reaching sufficient scale to compete effectively.

The letter also points to mandatory developer registration, app review and contractual requirements for apps distributed outside the App Store, arguing that these allow Apple to retain significant control over alternative channels.

By accepting the terms, the groups claimed that the EC is effectively rewriting the law.

The coalition has called on the Commission to consult affected parties, clarify the status of its ongoing DMA proceedings and bring relevant cases to a formal conclusion.

"Other platforms like Windows and Linux charge neither platform nor distribution fees at all for self-distribution, demonstrating that the levels proposed by Apple are neither technically nor operationally necessary," said EGDF MD Jari-Pekka Kaleva.

He added: "From an EGDF perspective, we have to in particular monitor how Apple implements their new requirements for parental gates. Device level parental control tools are coreplatforms services and Apple must not be allowed to block access to them for games distributed outside Apple's walled garden."