Apple finally allows in-app insertion of external purchase links containing parameters, but Spotify and Epic strongly oppose the fee
In some countries, Apple allows app developers to insert links to their own subscription plan sales pages in apps, but there were restrictions on the links, such as prohibiting the use of parameters. However, following a lawsuit filed by the European Commission against Apple for violating the Digital Markets Act (DMA), Apple has lifted the restrictions on inserting external purchase links in apps within the EU.
Updates to the StoreKit External Purchase Link Entitlement - Latest News - Apple Developer
Apple announces new fee structure for apps in the EU that link out to the web for purchases - 9to5Mac
Spotify and Epic Games call Apple's revised DMA compliance plan 'confusing,' 'illegal' and 'unacceptable' | TechCrunch
https://techcrunch.com/2024/08/08/spotify-and-epic-games-call-apples-revised-dma-compliance-plan-confusing-illegal-and-unacceptable/
In the EU, Apple app developers can insert external links within their apps to inform users of 'cheaper billing methods,' but Apple does not allow links, redirects, or intermediate links to landing pages that contain parameters to identify users in the external purchase links.
The European Commission has filed a lawsuit against Apple, accusing it of failing to comply with its obligations to allow app developers to direct users to services outside the App Store without charging them a fee, which could result in fines of up to $38 billion.
Apple faces first lawsuit over EU digital market law violation, could face fines of up to 6 trillion yen if found guilty - GIGAZINE
In response to this ruling, Apple removed the restriction on external purchasing links on August 8, 2024. As a result, developers can now insert parameters into external purchasing links, as long as the parameters are not used for advertising or user profiling.
Apple also announced that it will introduce a new fee structure to replace the Core Technology Fee (CTF), which charges a fee on external purchases.
Apple has introduced two types of fees for apps that link to web pages: an 'initial acquisition fee' and a 'store service fee.' The 'initial acquisition fee' applies to the first 12 months after a user downloads an app that is eligible to insert an external purchase link.
In addition, the 'store service fee' is a fee for the sale of digital goods and services, and is charged for 12 months from the date of installation, update, or reinstallation of the app. In other words, developers who regularly update their apps will continue to be charged the store service fee indefinitely.
If you operate under the EU Alternative Business Terms, the initial acquisition fee is 5% and the store service fee is 10%, and if you offer your app on the App Store under the standard business terms, the initial acquisition fee is 5% and the store service fee is 20%.
Spotify criticized this pricing system, saying, 'Apple is demanding a commission of up to 25% and blatantly ignoring the basic requirements of the DMA. We call on the European Commission to promptly investigate Apple and impose fines for violating the DMA.'
Epic Games CEO Tim Sweeney, who has been in a long-running legal battle with Apple, also said, 'Apple continues to impose new and illegal fees on users who move to competing stores and engage in malicious compliance.'
In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores. https://t.co/YUYwsnrh32 pic.twitter.com/xAWGkOWPrH
— Tim Sweeney (@TimSweeneyEpic) August 8, 2024
Continued
Apple finally allows Spotify to show pricing information to EU users on its iOS app - GIGAZINE
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