Europe was hit with a $2 billion fine by Apple
The European Commission is looking into Apple’s business tactics against mobile wallets, payments, and the social media giant apple’s app store (App Store)
It was not until Apple revealed its plans to comply with the EU’s Digital Markets Act that the in-app purchases decision was taken down from the website. The compliance deadline for the DMA is later this week. In order for the new set of business terms to work for developers, they need to have at least one million installs on their app. That fee can add up for larger freemium apps like Spotify.
The Commission said it took into account the “duration and gravity of the infringement” when setting the fine, as well as Apple’s total turnover and market capitalization, while also factoring in “incorrect information” submitted by Apple during the administrative procedure.
Along with its investigation into Apple’s policies regarding their App Store, the European Commission is looking at Apple’s restriction on tap-top-pay in its wallet and payment services. As a result of the investigation, Apple has offered to let third-party mobile wallet and payment providers use the iPhone’s NFC feature for payments.
Daniel Ek is a reluctant figure in Europe’s fight against Apple because he has expressed disapproval of Apple’s business tactics. The spokesman for disgruntled European app developers has a self-proclaimed shyness and decided that he wanted to be a public figure.
Spotify has already sent Apple its plans to introduce pricing information within its app. The European Commission will scrutinize the decision if Apple accepts or rejects the proposal.
Spotify isn’t going to launch the in-app purchases it previously planned for the European Union, at least right now. If Apple approves a newly submitted update, it will try to provide pricing information in the app and link users to its subscription options.
Apple started letting reader apps, including Spotify, Netflix, and Kindle, include links to their websites in apps in 2022. Apple restricts the use of language reader apps to tell users how much a subscription costs, even after they point users toward their link.
