Apple has made a significant policy change in the European Union (EU) following a charge by the commission for breaching the bloc’s tech rules. The commission had accused Apple of only allowing app developers to steer customers through “link-outs,” which redirect them to a web page to complete a contract. Now, Apple will allow developers to communicate and promote offers from within their apps, regardless of whether they are available on their own website or elsewhere.
However, along with this change, Apple will also introduce two new fees. The first is a 5 percent acquisition fee for new users, and the second is a 10 percent store services fee for any sales made by app users on any platform within 12 months of installing the app. These fees will replace the reduced commission that Apple currently charges for all digital goods and services sold through the App Store.
The move by Apple has been met with mixed reactions. Spotify, which has been involved in a long-standing dispute with Apple over in-app links, is assessing the proposal. A spokesperson for Spotify criticized Apple for demanding up to a 25 percent fee for basic communication with users, stating that it disregards the requirements of the Digital Markets Act.
The European Commission had previously criticized the fees charged by Apple for facilitating the initial acquisition of new customers by developers. They believed that these fees exceeded what was necessary for fair compensation. A Commission official stated that they would assess Apple’s changes and take into account feedback from the market and developers.
This charge against Apple is the first under the landmark Digital Markets Act, which aims to regulate the power of Big Tech companies. Violations of the DMA could result in fines of up to 10 percent of a company’s global annual turnover.
Overall, this policy change by Apple in the EU represents a step towards greater fairness and competition within the app economy. By allowing developers to communicate with their customers more freely, it creates more opportunities for them to promote their offers and services. However, the introduction of new fees has raised concerns, particularly from Spotify, who argue that they go against the principles of fair compensation. It remains to be seen how these changes will impact the app market and whether further adjustments will be made based on feedback from developers and the market.
