Apple has modified its policy within the European Union to permit developers to engage with their customers outside the App Store, following a charge by the European Commission in June for violating the bloc's technology regulations. The commission had previously stated that under most business conditions, Apple only allows navigation through 'link-outs', which means app developers can include a link in their app that directs the customer to a webpage where a contract can be finalized.
Apple announced that developers will now be able to communicate and promote offers available anywhere, not just on their own website, directly within their app. However, Apple will implement two new charges: an initial five percent acquisition fee for new users and a ten percent store services fee for any sales made by app users on any platform within the first 12 months of app installation.
Currently, Apple levies three types of fees: a core technology fee for less than one percent of apps, a reduced commission for all digital goods and services sold through the App Store, and an optional fee for payments 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 had disputes with Apple over in-app links, stated it is evaluating Apple's proposal. A Spotify spokesperson commented, 'At first glance, by demanding up to a 25 percent fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act.'
The commission had earlier criticized Apple's fees for facilitating the initial acquisition of a new customer by developers through the App Store, stating they exceeded what was strictly necessary for such remuneration. A Commission official said, 'We will assess Apple's eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers.'
The charge against Apple marks the first under the Commission's landmark Digital Markets Act, aimed at curbing the power of Big Tech, and violations of the DMA could result in a fine of up to 10 percent of a company's global annual turnover. — Reuters
