EU Digital Services Act brings new requirements for app store developers

Apple this week reminded developers of the new requirements for app developers distributing their products in the App Store in the European Union (EU). These changes, mandated by the EU's Digital Services Act (DSA), will significantly impact how developers operate and display information about their apps in the region. The announcement, made just two months before the first deadline, outlines a series of steps developers must take to ensure compliance and maintain their presence in the App Store in EU territories.

According to Apple's official statement, developers must provide their trader status to submit new apps or app updates for distribution in the EU starting October 16, 2024. This requirement stems from Articles 30 and 31 of the DSA, which obligate Apple to verify and display trader contact information for all entities distributing apps in the App Store within the EU. The information to be displayed includes an address, phone number, and email address, which will be posted on the app's product page in the App Store.

The implementation of these new rules will occur in two phases. The first deadline, set for October 16, 2024, requires developers to declare their trader status before submitting any new apps or updates for review. This step is crucial for developers who wish to continue updating their apps without interruption. The second, more stringent deadline falls on February 17, 2025. After this date, any app lacking the required trader status information will be removed from the EU App Store until the developer provides and verifies their trader status.

These new requirements apply to all developers with apps available in the EU, regardless of their geographical location. Even developers who do not distribute apps in the EU must declare a trader status to maintain compliance across territories when distributing in the App Store. This broad application of the rules underscores the far-reaching impact of the DSA on the global app development community.

The concept of a "trader" under the DSA is nuanced and requires careful consideration by developers. The DSA defines a trader as "any natural person, or any legal person irrespective of whether privately or publicly owned, who is acting, including through any person acting in his or her name or on his or her behalf, for purposes relating to his or her trade, business, craft or profession." To assist developers in determining their status, Apple has provided guidance based on European Commission notices and publications.

Factors that may indicate trader status include generating revenue from the app through in-app purchases, paid downloads, or advertising; engaging in commercial practices towards consumers; being registered for VAT purposes; and developing the app in connection with a trade, business, craft, or profession. However, hobbyists who develop apps without the intention of commercialization may not be considered traders under EU law.

The information required from traders varies depending on whether the developer is enrolled in the Apple Developer Program as an individual or an organization. Organizations will need to provide a phone number and email address, with their address automatically displayed based on their D-U-N-S Number. Individual developers must enter their address or P.O. Box, phone number, and email address. All traders are required to provide payment account details and certify that they only offer products or services complying with applicable EU laws.

To facilitate this process, Apple has introduced new features in App Store Connect, the platform developers use to manage their apps. Account Holders and Admins can now enter EU Digital Services Act compliance information through the Business section of App Store Connect. The process involves selecting the appropriate trader status, entering contact information, validating the provided email and phone number through two-factor authentication, and uploading documentation to verify the business name and address.

Developers also have the option to change their trader status for individual apps, providing flexibility for those who may have different operational models for different products. Additionally, under the DSA, developers can provide a Labels and Markings URL to display any labels or markings required by EU law on their App Store product pages.

These new requirements represent a significant shift in how app stores operate within the EU and reflect the broader trend of increased regulation in the digital marketplace. The DSA, which came into force on November 16, 2022, aims to create a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses. By requiring more transparency from app developers, the EU seeks to empower consumers with more information about the entities they are interacting with online.

For Apple, implementing these changes requires a delicate balance between complying with EU regulations and maintaining a user-friendly experience for both developers and consumers. The phased approach to implementation gives developers time to adapt, but also sets a firm deadline for compliance to avoid disruption in the EU app market.

The impact of these changes extends beyond just the developers and Apple. Consumers in the EU will soon have access to more detailed information about the apps they download, potentially influencing their decisions and interactions with digital services. This increased transparency could lead to greater trust in the digital marketplace but may also raise new questions about data privacy and the use of personal information in app stores.

As the deadlines approach, it is crucial for developers to understand these new requirements and take the necessary steps to comply. Failure to do so could result in the removal of their apps from one of the world's largest digital marketplaces, potentially causing significant financial and reputational damage.

Key facts

Developers must provide trader status for EU app distribution starting October 16, 2024.

Apps without trader status will be removed from the EU App Store after February 17, 2025.

The requirements stem from Articles 30 and 31 of the EU Digital Services Act.

Trader information includes address, phone number, and email address.

Different requirements apply to individual developers and organizations.

Developers can manage their DSA compliance information through App Store Connect.

The changes aim to increase transparency and consumer protection in the EU digital market.