On Friday, Apple eased its App Store payment policies following a critical court ruling, and Spotify promptly took advantage of the new situation.
Apple revised its App Store guidelines to inform developers that they can now include links directing customers to external payment systems. This change enables users to purchase apps listed in Apple’s U.S.-based online store without using the App Store for payments.
The rule change came just two days after a US judge accused Apple of defying an order to loosen its grip on the App Store payment system to the point that criminal charges could be warranted.
The music streaming behemoth Spotify announced on Friday that Apple had approved an updated version of their application. This new iteration would enable them to clearly display price details and provide direct links for purchases within their app through the U.S. App Store.
“Apple has approved Spotify’s U.S. app update, marking a win for consumers, artists, creators, and writers,” the Swedish company stated in an announcement on X.
Today marks an important landmark for developers and entrepreneurs globally who aspire to create and contend on a fairer competitive landscape.
Epic Games chief executive Tim Sweeney shared the Spotify post along with a message of congratulations for it “being the first major iOS app to exercise its court mandated right to do digital commerce with customers free of Apple obstruction, interference, and the Apple Tax!”
US District Court Judge Yvonne Gonzalez Rogers determined that Apple deliberately breached her ruling from the previous trial by implementing additional obstacles for competitors within the App Store and even misled the court during this time.
Judge Gonzalez Rogers ruled that the injunction should be implemented.
A representative from Apple informed AFP that they firmly disagree with the judge’s ruling and plan to appeal to a superior court, though they will comply for now.
‘Junk fees’
The company behind Fortnite, Epic, initiated this legal action in 2021 with the intention of challenging Apple’s control over the App Store. They accused Apple of monopolistic behavior regarding transactions involving digital products and services within their platform.
Following the trial, Judge Gonzales Rogers determined that Apple’s management of the App Store does not constitute a monopoly. However, she mandated that Apple must permit developers to add links directing users to alternative online platforms for purchasing content or services.
In response to the court order, Apple introduced additional obstacles and stipulations, such as “warning screens,” designed to discourage customers from making digital purchases outside of its App Store, according to the judge’s assessment.
“Apple’s 15-30 percent surcharge fees are now equally defunct in the United States as they are in Europe due to the Digital Markets Act,” Sweeney stated in an X post.
The legislation, implemented last year in Europe, mandates that companies like Apple and other major U.S. technology firms must allow greater competitive access to their platforms within the region.
Courting developers
Apple has prioritized expanding its services division as the tech giant from Silicon Valley aims to decrease its dependence oniPhone revenues.
This division, encompassing Apple’s TV and music streaming offerings alongside iCloud storage fees and earnings from the App Store, currently makes up over 25% of the corporation’s total revenue.
According to Apple, the updates to the App Store allow developers to utilize alternative payment methods without facing charges or commissions from the company.
“Regardless of the income Apple was generating, it doesn’t make sense for them to appear as though they aren’t prioritizing the interests of developers,” stated Carolina Milanesi from Creative Strategies.
In June, Apple plans to woo application developers during their yearly developers conference.
“Subscriptions, iCloud, and additional services continue to generate significant income for the company, which means the App Store remains a profitable resource for Apple,” according to Milanesi.
Many applications within the App Store generate income through advertisements, with Apple receiving a portion of this earnings, as stated by the analyst.
“And for smaller developers, the App Store is still the best way to reach consumers without having to invest the kind of money that an Epic Games or Spotify can invest in setting up alternative payment methods,” the analyst added.
