Apple Changes App Store Policy in EU After Facing Probe for Breaching Tech Laws

Apple will be introducing two new fees to replace the reduced commission for all digital goods and services sold through the App Store.

Advertisement
By Reuters | Updated: 9 August 2024 12:07 IST
Highlights
  • EU opened a probe on Apple in June
  • Apple has revised its App Store fee structure in the EU
  • This case is first under EU's Digital Markets Act

Apple said developers will now be able to communicate and promote offers that are available anywhere

Apple on Thursday changed its policy in the European Union to allow developers to communicate with their customers outside its App Store after the commission charged the iPhone maker in June for breaching the bloc's tech rules.

The Commission had said that under most of the business terms, Apple allows steering only through "link-outs", meaning that app developers can include a link in their app that redirects the customer to a web page where the customer can conclude a contract.

Advertisement

Apple said developers will now be able to communicate and promote offers that are available anywhere, not just on their own website, from within their app.

However, Apple will introduce two new fees - an initial five percent acquisition fee for new users and a 10 percent store services fee for any sales made by app users on any platform within the 12 months of the app installation.

Advertisement

Currently, Apple charges three types of fees: a core technology fee for the 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 the payments and commerce services.

The two new fees will replace the reduced commission for all digital goods and services sold through the App Store.

Advertisement

Spotify, which has been at loggerheads with Apple over in-app links, said it was assessing Apple's proposal.

"At first glance, by demanding as much as a 25 percent fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act," a Spotify spokesperson said.

Advertisement

The Commission had earlier criticised the fees charged by Apple for facilitating via the App Store the initial acquisition of a new customer by developers, saying they went beyond what was strictly necessary for such remuneration.

"We will assess Apple's eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers," a Commission official said.

The charge against Apple is the first by the Commission under its landmark Digital Markets Act which seeks to rein in the power of Big Tech and DMA violations could result in a fine of as much as 10% of a company's global annual turnover.

© Thomson Reuters 2024

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Why LG NU885 Is a 4K TV to Buy if You're Not Spending Flagship Money
  2. LG Channels: 150+ Free Channels, Zero Extra Hardware
  3. Flipkart Big Billion Days Sale 2026: Galaxy S25 FE, Galaxy S25 and More to Get Discounts
  4. Apple Pay Finally Arrives in India With Axis Bank as Its First Partner
  5. GTA 6 Map Twice as Large as GTA 5, Largest Rockstar Has Ever Made
  6. Noise Homestage 5.2.4 With 700W Output, Dolby Atmos Launched in India
  7. Smart TV OS in India, Compared: Where webOS Pulls Ahead
  8. Flipkart Big Billion Days Sale: Oppo Find X9 Ultra, K14x, More Oppo Deals Revealed
  9. Google Fitbit Air With Continuous Heart Rate Tracking Debuts in India
  10. Oppo F35 Series Confirmed to Launch in India With These Camera Sensors
  1. Bitcoin Stays Near $83,000 as October Fed Hike Odds Drop Below 50 percent
  2. Flipkart Big Billion Days Sale: Oppo Find X9 Ultra, K14x and Other More Phone Deals Revealed
  3. Google Fitbit Air Launched in India as Firm's First Screenless Fitness Tracker With Continuous Heart Rate Tracking, SpO2 Sensor: Price, Features
  4. Vivo X Fold 6 Global Launch Nears as European Listing Reveals Price and Specifications
  5. Samsung SmartThings Gets Major Redesign on iPhone With New Home Tab, Routine Insights Feature, and More
  6. Grand Theft Auto 6's Map Is Twice as Large as GTA 5, Features Dynamic Weather System, Says Rockstar Games
  7. Oppo F35 Pro 5G, Oppo F35 5G Camera Configuration, Colour Options Revealed Days Before India Launch
  8. Apple iPhone Duo Could Face Limited Launch-Day Supply as Production Yields Remain Low
  9. Flipkart Big Billion Days Sale 2026: Samsung Galaxy S25, Galaxy S25 FE and More Teased to Get Discounts
  10. OpenAI Introduces ChatGPT Dots: 4000+ Apps Support, Availability, and More Explained
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.