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Apple Changes EU App Store Policy

Following a June charge by the Commission for violating the bloc's tech regulations, Apple modified its policies in the European Union on Thursday to permit developers to interact with users outside of the app.

Apple Changes EU App Store Policy

Apple Changes EU App Store Policy
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9 Aug 2024 4:10 PM IST

Following the Commission's June charge against the iPhone manufacturer for violating the bloc's tech regulations, Apple opened a new tab on Thursday and modified its policies in the European Union to permit developers to interact with their customers outside of its App Store.

As per the Commission's ruling, Apple is only permitted to allow steering through "link-outs"—that is, app developers are permitted to incorporate a link in their app that directs users to a web page where they can finalise a contract.

According to Apple, developers can now interact with one another and advertise deals that are available from within their app—not just on their own website.

Apple, however, is going to implement two new fees: a one-time 5% acquisition fee for new users and a 10% store services fee for any sales that app users make within a year of installing the app, regardless of platform.

Now, Apple levies three different kinds of fees: an optional fee for payments and commerce services, a reduced commission for all digital goods and services sold through the App Store, and a core technology fee for less than 1% of apps.

The reduced commission for all digital goods and services sold through the App Store will be replaced by the two new fees.

Spotify, the company that has been at odds with Apple over in-app links, opened a new tab and stated it was reviewing Apple's proposal.

"At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act," a representative for Spotify stated.

The Commission had previously criticised Apple for charging fees that exceeded what was strictly required for such compensation to facilitate developers' initial acquisition of a new client through the App Store.

"We will assess Apple's eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers," said an official from the Commission. The Commission has charged Apple for the first time under the historic Digital Markets Act, which aims to limit the influence of Big Tech. Violating the Act may result in fines of up to 10% of a company's yearly global turnover.

Margrethe Vestager European Commission DMA Digital Markets Act Apple App Store Apple App developers 
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