Aug 9, 2024, 12:21 PM
Jul 26, 2024, 11:29 AM

Apple Allows Direct Communication in EU

Left-Biased
Highlights
  • Apple changed its policy in the European Union to allow direct communication between developers and customers outside the App Store.
  • The change comes after the European Commission charged Apple with breaching the bloc's tech rules.
  • Digital rights groups criticized Apple's compliance with the EU's Digital Markets Act as ineffective.
Story

STOCKHOLM—In a significant policy shift, Apple announced on Thursday that it will allow app developers in the European Union to communicate with customers outside its App Store. This change comes after the European Commission charged Apple in June for violating the bloc’s tech regulations. Previously, developers could only direct users to external sites through “link-outs,” but now they can promote offers from within their apps, expanding their marketing capabilities. However, this new flexibility comes with a cost. Apple will implement two new fees: a 5% acquisition fee for new users and a 10% store services fee on sales made by app users within 12 months of app installation. These fees will replace the existing reduced commission structure for digital goods and services sold through the App Store. Currently, Apple has a tiered fee system that includes a core technology fee and optional fees for payment services. Spotify, a vocal critic of Apple’s App Store policies, is currently evaluating the implications of these changes. A spokesperson for Spotify expressed concern that the new fees, which could total 25%, undermine the principles of the Digital Markets Act (DMA). The Commission has previously criticized Apple’s fees as excessive and beyond what is necessary for customer acquisition. The European Commission has initiated three investigations into Apple’s compliance with the DMA, which aims to curb the dominance of major tech companies. Violations of the DMA could lead to fines of up to 10% of a company’s global annual revenue, highlighting the ongoing tension between regulatory bodies and tech giants.

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