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Apple changes EU App Store rules after commission charges

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Apple changes EU App Store rules after commission charges

Apple on Thursday changed its policy in the European Union to allow developers to communicate with customers outside its App Store after the commission accused the iPhone maker in June of violating the bloc’s technology rules.

The commission had said that under most commercial terms, Apple allows management only through “external links,” meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract.

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Apple said developers will now be able to communicate and promote deals that are available anywhere, not just on their own website, from within their app.

However, Apple will introduce two new fees: a 5% initial acquisition fee for new users and a 10% store services fee for any sales made by app users on any platform within 12 months of installing the app.

Apple currently charges three types of fees: a core technology fee for less than 1% of apps, a reduced commission for all digital goods and services sold through the App Store, and an optional fee for payment and commerce services.

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

Spotify, which has been at odds with Apple over in-app links, said it was evaluating Apple’s proposal.

“On its face, by charging a fee of up to 25% for basic communication with users, Apple is once again blatantly ignoring fundamental requirements of the Digital Markets Act,” a Spotify spokesperson said.

The Commission had previously criticised the fees charged by Apple to facilitate developers’ initial acquisition of a new customer through the App Store, saying they went beyond what was strictly necessary for such remuneration.

“We will assess any changes Apple may make to its enforcement 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 its landmark Digital Markets Act, which seeks to curb the power of Big Tech. Violations of the DMA could result in a fine of up to 10% of a company’s global annual turnover.

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