Apple updates EU App Store policy after Commission investigation
Apple has made major changes to its app store policy in the European Union, allowing developers to communicate with customers outside the App Store. The move comes after the European Commission accused Apple in June of violating technical rules.
The new policy allows developers to promote offers and communicate directly with customers from within their apps, giving users more flexibility and choice. However, the change comes with two new fees: a 5% acquisition fee for new users and a 10% retail services fee for any sale made within the first 12 months of installing the app on a platform.
Currently, Apple charges three types of fees: core technology fees for less than 1% of apps, a reduced commission for digital goods and services sold through the App Store and optional fees for payments and merchant services. The two new fees replace the reduced commission fee for digital goods and services sold through the App Store.
Spotify, which has been at odds with Apple over in-app links, is reviewing the proposal. A Spotify spokesperson expressed concern about Apple’s demand that a significant portion of revenue be derived from basic customer interactions. “By charging a whopping 25% fee for basic communications with users, Apple is once again blatantly ignoring the fundamental requirements of the Digital Markets Act,” the spokesperson said.
The European Commission had previously criticised Apple’s fees for facilitating developers’ initial recruitment of new customers. The Commission found that these fees were higher than necessary. A Commission official said it will review Apple’s changes, taking into account feedback from the market and developers.
The suit against Apple is significant because it is the Commission’s first enforcement action under its landmark Digital Markets Act (DMA), designed to curb the power of Big Tech. Violations of the DMA can result in fines of up to 10% of the company’s annual global sales.
Apple’s changes are expected to have a major impact on both developers and consumers as they make the interaction between apps and customers more dynamic. While the Commission will continue to monitor Apple’s compliance with the new policy, it remains to be seen whether this move will help address concerns about Big Tech’s power and influence in the digital marketplace.
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