Aug 9, 2024, 10:18 AM
Jul 26, 2024, 11:29 AM

Apple responds to EU accusations with App Store rule changes

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Highlights
  • Apple adjusted its rules in the App Store in response to criticism from the EU.
  • The changes came after the European Union accused Apple of breaching technology regulations.
  • Apple made modifications to its App Store rules following allegations from the EU.
Story

Tech giant Apple announced on Thursday plans to modify its App Store payment system, allowing users to pay for apps through methods outside of its own platform. This decision follows accusations from the European Union in June, which claimed Apple was in violation of new digital regulations regarding payment processing for apps on devices like iPhones and iPads. Currently, Apple imposes a 30% fee on app purchases, which decreases to 15% for ongoing subscriptions after the first year. The EU has criticized Apple for restricting developers from directing users to alternative payment options. Margrethe Vestager, Vice-President of the European Commission, stated that Apple's practices hinder developers' ability to "steer" users towards better deals, which is essential for reducing dependency on dominant app store platforms. The Commission's preliminary findings suggest that Apple's policies limit competition and consumer choice. While specific details of the upcoming changes remain unclear, Apple indicated it will implement a reduced fee of 5% for sales made through external websites accessed via apps. This adjustment aims to facilitate a more flexible payment structure for developers and users alike. In contrast, Google, which operates the Android system, also charges a 30% fee for app sales through its Play Store. However, Android users have the option to download apps from various sources beyond the official store, providing them with greater flexibility compared to Apple's more restrictive approach.

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