The European Union has reportedly asked tech giants Google and Apple to crack down on 'freemium' apps and set new rules to clearly distinguish between free apps and premium apps.

The EU officials met with representatives from Apple, Google and consumer protection agencies to discuss how developers represent in-app purchases to European consumers.

According to Mashable, the union has asked the companies to set new rules aimed at making app developers more transparent and to put in place new regulations to prevent children from making accidental purchases.

EU's justice commissioner, Viviane Reding, said that tighter regulations on how in-app purchases are made would ensure consumers are aware of exactly what they are buying.

Reding further said that misleading consumers is clearly the wrong business model and also goes against the spirit of EU rules on consumer protection.

The report said that the main issues to be addressed by the companies include wider transparency about games that are advertised as 'free,' informing consumers about the payment arrangements and purchases.

The union also aims to address that games do not contain direct exhortations to children to buy items in a game or to persuade an adult to buy items for them and traders should provide an email address so that consumers can contact them in case of queries or complaints.

Recently, Apple settled a complaint with the FTC that resulted in the company paying back consumers 32.5 million dollars for accidental in-app purchases made by children.