Apple changes EU app store policy after commission investigation: Details here

2 minutes of reading Last update: August 09, 2024 | 12:36 PM IST

Apple on Thursday changed its policy in the European Union, allowing app developers to communicate with customers outside the App Store, after the European Commission in June accused the iPhone maker of violating EU technology rules.

The Commission found that under most of its terms of business, Apple only allows controls via “outbound links”, meaning app developers can place a link in their apps that redirects a customer to a website where the customer can enter into a contract.

Apple said app developers will now be able to communicate and promote offers available not only on their own website, but also through their apps.

However, Apple will introduce two new fees – an initial five percent user acquisition fee and a 10 percent store services fee on all sales made by app users on any platform within 12 months of installing the app.

Apple currently charges three types of fees: a base technology fee for less than one percent of an app, a reduced fee for all digital goods and services sold through the App Store, and an optional fee for payments and commerce services.

Two new fees will replace the reduced commission for all digital goods and services sold through the App Store.

Spotify, which has been in a dispute with Apple over in-app links, said it is considering Apple’s proposal.

“On its face, demanding a whopping 25 percent fee for basic user communications signals that Apple is once again brazenly flouting the basic requirements of the Digital Markets Act,” a Spotify spokesperson said.

The Commission has previously criticized the fees charged by Apple to help game developers attract new customers through the App Store, saying they go beyond what is strictly necessary to obtain such remuneration.

“We will assess any changes Apple may make to its compliance measures, also taking into account any feedback from the market, especially from developers,” a Commission official said.

The charge against Apple is the first brought by the Commission under the groundbreaking Digital Markets Act, which aims to curb the influence of big technology companies, and DMA breaches can result in fines of up to 10% of a company’s global annual turnover.

First published: August 09, 2024 | 12:36 PM IST