Europe Takes Aim at In-App Purchases
The European Commission has expressed concerns about in-app purchases and has scheduled meetings between consumer protection agencies and mobile technology companies. At issue is whether the "freemium" model, where apps are free to download but offer in-app purchases. "Misleading consumers is clearly the wrong business model and also goes against the spirit of EU rules on consumer protection," stated Vice-President Viviane Reding, the EU's Justice Commissioner. "The European Commission will expect very concrete answers from the app industry to the concerns raised by citizens and national consumer organisations."
The European mobile development industry employs more than 1 million people and is forecast to generate $86.4 billion in revenue over the next five years.