Apple changes App Store policy in EU after investigation into tech law violation
Apple on Thursday changed its policy in the European Union to allow developers to communicate with their customers outside the App Store, after the commission in June charged the iPhone maker with violating the EU’s technical rules.
The Commission had stated that Apple only allows directing via ‘link-outs’ under most of its business terms. That is, app developers can include a link in their app that takes the customer to a web page where the customer can conclude a contract.
Apple said developers can now communicate and promote offers from within their app that are available everywhere, not just on their own website.
However, Apple will implement two new fees: a five percent initial acquisition fee for new users and a ten percent service fee on all sales made by app users on any platform within twelve months of installing the app.
Currently, Apple charges three types of fees: a core technology fee for its apps that is less than one percent, a reduced commission on all digital goods and services sold through the App Store, and an optional fee for its payment and commerce services.
The two new rates replace the reduced commission for all digital goods and services sold through the App Store.
Spotify, which has been in dispute with Apple over in-app links, said it is reviewing Apple’s proposal.
“On its face, Apple is once again flouting the fundamental requirements of the Digital Markets Act by charging a whopping 25 percent fee for basic communications with users,” a Spotify spokesperson said.
The Commission had previously criticised the fees charged by Apple for facilitating the initial acquisition of a new customer by developers via the App Store, arguing that these costs went beyond what was strictly necessary to justify such a fee.
“We will assess the final changes Apple makes to the compliance measures, also taking into account feedback from the market, in particular from developers,” a Commission official said.
The charges against Apple are the first brought by the Commission under the landmark Digital Markets Act, which aims to curb the power of Big Tech. Violations of the DMA can result in fines of up to 10% of a company’s annual global turnover.
© Thomson Reuters 2024
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