Apple changes EU policy amid digital markets act scrutiny

Apple has revised its policy in the European Union to comply with new tech regulations following a charge from the European Commission. The updated policy, effective Thursday, will allow developers to engage with customers outside the App Store.

Key Changes

  • New Communication Rules: Developers can now promote offers and communicate with users directly within their apps, beyond just linking to their own websites.
  • Introduction of Fees: Apple will implement two new fees:
    • 5% Acquisition Fee: Charged for new users.
    • 10% Store Services Fee: Applied to sales made on any platform within 12 months of the app’s installation.

These new fees will replace the previously reduced commission rates for digital goods and services sold through the App Store.

Industry Reactions

  • Spotify’s Response: Spotify, which has had ongoing disputes with Apple over in-app linking, is reviewing the changes. A Spotify spokesperson criticized the high fees as being inconsistent with the Digital Markets Act’s requirements.
  • EU Commission’s Stance: The Commission, which criticized Apple’s previous fees, will evaluate the new compliance measures and consider feedback from developers. This charge is the first under the Digital Markets Act, which targets Big Tech’s market power and could lead to significant fines.

Background

The European Commission charged Apple in June for breaching tech rules by restricting how developers could interact with their users. The Digital Markets Act aims to curb the influence of major tech companies like Apple by enforcing stricter regulations and promoting fairer competition.