Strong Interpretation of Apple's EU Merchant Policy

on 5 days ago

Following the principle of "too long, didn't read," I'll just highlight some key points.

The Tension Between Apple and the EU

Apple went to great lengths to implement this so-called "Merchant Compliance Verification" mainly because it was being pressured by the EU's Digital Services Act (DSA) and had no choice but to comply.

Under Articles 30 and 31 of the Digital Services Act, Apple is required to verify and publicly disclose the contact information of all merchants distributing apps on the App Store in the EU.

To comply with the DSA, Apple began notifying developers on its official website in early 2024, continuously asking them to declare whether they are merchants.

At this point, developers have three options:

Select "Yes" and provide the required information.
Select "No", and nothing happens.
Do nothing and ignore the request.

Deciphering the February 17, 2025 Ultimatum

I wrote about the February 17 ultimatum yesterday.

This issue is currently controversial because Apple's wording is somewhat ambiguous.

The wording is as follows:

"Please set your merchant status in the 'Commerce' section by February 17, 2025, as required by the Digital Services Act. Otherwise, your app will be removed from the App Store in the EU."

This can be interpreted in two ways:

Possibility A: If a developer is not a merchant, their app will be removed.
Possibility B: If a developer does not declare whether they are a merchant, their app will be removed.

Most mainstream media leans toward the first interpretation, which is why everyone is so nervous.

However, as of today (the 18th), testing shows that apps with the merchant status set to "No" have not been removed from the EU App Store.

This cautiously suggests that the actual situation aligns with the second interpretation: Apple simply wants developers to explicitly declare whether they are merchants. As long as you make a declaration (regardless of the answer), your app won’t be removed—though there may be some hidden consequences.

So, Are Developers Actually Merchants?

Let me be blunt: I’m not targeting anyone, but most of you here are merchants.

The documentation is very convoluted, but we can focus on these two key points:

Do you earn revenue through your app (e.g., in-app purchases, paid downloads, or ads, especially if the transaction volume is significant)?
Do you engage in consumer-facing commercial activities, including advertising or promoting products/services?

Let’s be honest—most developers releasing apps overseas aren’t doing it for charity. They’re in it to make money.

From a purely technical standpoint, if your app has in-app purchases or ads, you’re almost certainly a merchant.

The remaining 1% edge cases might involve charitable apps or other special circumstances.

This issue, in my opinion, is no longer up for debate.

The Three Choices and Their Consequences

Now, setting aside whether you’re a merchant, let’s discuss the three options and their outcomes:

Select "Yes" and provide information:
- Result: You must provide contact details (address, phone number, email) to Apple. After verification, this information will be publicly displayed in the EU.
Select "No":
- Result: Apple will inform EU consumers that consumer protection laws may not apply to their agreements with you.
Do nothing:
- Result: Per the February 17 ultimatum, your app will be removed.

The key here is the second option.

If you declare you’re not a merchant (regardless of whether you actually are), your app should not be removed. Apple is simply telling EU consumers: "Hey, this developer isn’t a merchant, so your local consumer rights might not apply here."

Clearly, Apple just wants to pass the buck. As long as the responsibility is shifted, it doesn’t want to go out of its way to enforce anything.

From this perspective, developers who declare they’re not merchants seem to be out of immediate danger—for now.

What Happens If You’re a Merchant but Select "No"?

This is the critical part.

Let’s analyze Apple’s official stance on this:

"The changes we’re announcing today are designed to comply with the EU’s Digital Markets Act while helping protect EU users from the inevitable privacy and security threats this law introduces. Our top priority remains delivering an incredibly secure and excellent experience for users in Europe and around the world."
— Apple Fellow Phil Schiller

Reading between the lines, Apple’s internal monologue is: "This stupid law introduces privacy and security risks, but we’re forced to comply. We’ll do the bare minimum to get by."

Finally, Apple adds this crucial line in the "Merchant Self-Assessment" section:

"Apple cannot determine whether you are a merchant."

This is very straightforward. Even if a developer says:
"Sure, my app is packed with subscriptions, in-app purchases, and full-screen ads, but I swear I’m not a merchant!"
Apple won’t bother verifying it: "You say yes? Fine. You say no? Fine. Not my problem (unless the EU fines us for it)."

Can Apple really not determine this? Of course it can. It just doesn’t want to. If there’s any enforcement to be done, let the EU handle it.

A Final Piece of Advice

Alright, analysis done. Here’s what developers should do:

Stop overthinking whether you’re a merchant. Assume you are one.
If possible, select "Yes" and provide the info. This isn’t hard—just gather an address, phone number, and email.
- Pro tip: For address verification, credit card statements are the easiest. But some veteran developers suggest using phone bills, which is genius—you can top up online and set the address instantly.
If you can’t provide the info, select "No".
- This isn’t risk-free. As of now, Apple doesn’t seem to care, meaning your account or app won’t be banned just for selecting "No."
- However, larger apps might face risks if the EU steps in, competitors report them, or users complain. For small teams, this is a low-probability event.

This is my personal assessment and may contain strong opinions. Developers should weigh their options carefully.