Apple Modifies EU App Store Policy Post-Commission Inquiry

Apple Modifies EU App Store policy after a commission probe for breaching tech laws. It was in June the commission charged iPhone makers for breaching the bloc’s tech rules. As a resolution, the new App Store policy was released on Thursday in the European Union. According to the modified policy, the developers are permitted to communicate with their customers outside the App Store.

During the probe, the Commission had said that under most of the business terms, Apple allowed directing only through “link-outs”. This implies that hat app developers could include a link in their app that redirects the customer to a web page where the customer can conclude a contract. With the new policy, Apple said developers will now be able to communicate and promote offers that are available anywhere, not just on their website, from within their app.

Apple app store policy change: The new policy and the fee

Here comes the money matter. While Apple modifies EU App Store Policy allowing developers to put across with their customers outside the App Store, Apple is set to introduce two new fees. The fees comprise an initial five percent acquisition fee for new users and a 10 percent store services fee for any sales made by app users on any platform within the 12 months of the app installation.

Presently, Apple charges three types of fees. One is a core technology fee for less than one percent of apps, another a reduced commission for all digital goods and services sold through the App Store and the third one is an optional fee for the payments and commerce services. It is also announced that the two new fees will replace the reduced commission for all digital goods and services sold through the App Store.

Spotify’s response on App Store Policy change

Spotify, the global audio streaming and media provider platform that has been at loggerheads with Apple over in-app links, said it was assessing Apple’s proposal. “At first glance, by demanding as much as a 25 percent fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act,” said a Spotify spokesperson.

Earlier the Commission had criticized Apple for the fees charged for facilitating via the App Store the initial acquisition of a new customer by developers. The commission mentioned that ‘they’ went beyond what was strictly necessary for such remuneration.

“We will assess Apple’s eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers,” responded a Commission official.
The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and DMA violations could result in a fine of as much as 10% of a company’s global annual turnover. Waiting for the latest tech news is the only way to know more about the App Store policy change.