Apple Inc. has announced its compliance with European Union demands to cease preventing music-streaming applications from notifying users about alternative payment methods outside of its App Store, following pressure from Brussels regulators. Despite this concession, the Cupertino-based tech giant will continue to impose fees on transactions conducted through developers’ websites.
The decision from Apple comes after the company faced a €1.8 billion fine from EU regulators over allegations of anti-competitive behavior, particularly concerning the App Store’s practices. As part of the new arrangement, music streaming apps on Apple’s App Store in Europe will now be permitted to include links to developers’ websites, providing users with information about alternate subscription purchasing options.
However, Apple’s decision to charge a commission of up to 27% on app sales made through developers’ web pages, following a user’s click on an external link from the app and subsequent purchase within seven days, has drawn attention and may prompt objections from stakeholders.
The European Commission’s directive in March compelled Apple to address what it deemed as unfair terms in its contracts with music developers, resulting in the significant fine imposed on the company. This development stemmed from a protracted investigation initiated by Spotify Technology SA, a music streaming app based in Stockholm, which alleged that Apple’s practices compelled it to increase subscription prices to offset expenses associated with the App Store’s policies.
Previously, Apple contested the EU’s ruling, announcing its intention to appeal the decision and asserting that regulators failed to substantiate any credible evidence of harm to consumers. The company argued that the market was vibrant, competitive, and expanding rapidly.
While Apple has adjusted its fee structure in response to EU pressure, reducing charges from the previous rate of up to 30%, it maintains that the commission’s ruling does not impact its fee arrangement.
As of now, neither Spotify nor the European Commission has issued immediate responses to inquiries regarding Apple’s latest announcement.
