Key Points
- Apple now allows developers in the EU to communicate directly with customers outside the App Store.
- Apple adds a 5% acquisition fee and a 10% store services fee, replacing the reduced commission model.
- Spotify criticizes the new fees, suggesting they violate the Digital Markets Act.
- The change follows charges from the European Commission regarding Apple’s compliance with EU tech rules.
Apple has announced a significant policy change in the European Union, allowing developers to communicate directly with their customers outside its App Store. This shift comes after the European Commission charged the tech giant in June with violating the bloc’s digital market rules.
Previously, Apple’s policy permitted developers to steer users only through “link-outs,” meaning developers could include a link within their app that redirected customers to a web page to complete transactions. Now, Apple has relaxed these restrictions, allowing developers to promote offers available anywhere, not just on their websites, directly from within their apps.
However, this policy change comes with new costs for developers. Apple is introducing two additional fees: a 5% acquisition fee for new users and a 10% store services fee for any sales made on any platform within 12 months of the app’s installation. These fees will replace Apple’s reduced commission for digital goods and services sold through the App Store.
Apple’s fee structure has long been a point of contention among developers. Currently, the company imposes three fees: a core technology fee for a small fraction of apps (less than 1%), a reduced commission for digital goods and services sold via the App Store, and an optional fee for payment and commerce services. The new fees will effectively streamline and replace the reduced commission model.
Spotify, one of Apple’s most vocal critics, particularly regarding using in-app links, expressed skepticism about the new fees. A Spotify spokesperson stated, “At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act.” Spotify has been at odds with Apple over the limitations imposed on developers regarding how they can interact with customers and promote services outside the App Store.
The European Commission has previously criticized Apple’s fees for facilitating customer acquisition through the App Store, arguing that they exceeded what was necessary for such remuneration. A Commission official responded to Apple’s recent policy change, saying, “We will assess Apple’s eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers.”
Apple’s policy adjustment is seen as a response to mounting regulatory pressure in Europe, where lawmakers are increasingly scrutinizing big tech companies for practices they deem anti-competitive.