Apple Eases App Store Rules Amid Court Pressure, Spotify First to Benefit

AFP

San Francisco: Apple has made significant changes to its App Store rules following a court order, allowing developers to provide links to external payment platforms, enabling users to purchase apps without using Apple’s payment system. This decision comes just two days after a US judge accused Apple of not complying with a previous order to loosen its control over the App Store payment system.

Spotify was quick to take advantage of this change, announcing that it could now display clear pricing and external purchase links within its US app. This marks a significant shift in Apple’s longstanding practice of enforcing its own payment system and commission fees, which have been criticized by developers like Spotify and Epic Games.

Epic Games initiated the legal battle in 2021, accusing Apple of monopolistic practices within its App Store. While the court did not rule Apple’s control as monopolistic, it ordered the company to allow developers to include links to other online platforms for purchasing digital goods or services. Apple’s initial response to the ruling included creating new barriers to competition, including warnings to users about making purchases outside of the App Store, a move the judge labeled as a violation of the injunction.

The change in policy aligns with similar actions taken in Europe under the Digital Markets Act, which forces tech giants like Apple to open their platforms to competition. Apple, however, disagrees with the judge’s ruling and plans to appeal the decision but has indicated it will comply with the new guidelines.

The move comes as Apple focuses on expanding its services business, which now accounts for over a quarter of the company’s revenue. While the shift may impact revenue from the App Store’s commission on digital purchases, analysts believe Apple’s substantial revenue from services like iCloud, TV, and music streaming will continue to cushion its business model.

Despite these changes, analysts note that the App Store remains a lucrative platform for smaller developers, given its vast user base and the infrastructure it offers for reaching consumers.