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Apple has relaxed its App Store payment policies in response to a damning court order, with Spotify among the first to benefit from the change.
The update to Apple’s App Store guidelines now allows developers to include links to external payment platforms, enabling customers to purchase apps featured on the US App Store without using Apple’s payment system. The decision follows a recent ruling from a US judge, who accused Apple of defying an order to loosen its control over the App Store payment system, warning that criminal charges could be considered.
Spotify announced on Friday that Apple had approved an update to its app that will allow the company to display clear pricing information and provide links for direct purchases in the US App Store.
“In a victory for consumers, artists, creators, and authors, Apple has approved Spotify’s US app update,” the music streaming service, based in Sweden, said in a post on X (formerly Twitter). “Today represents a significant milestone for developers and entrepreneurs everywhere who want to build and compete on a more level playing field.”
Epic Games CEO Tim Sweeney also shared the post, congratulating Spotify for becoming “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!”
The ruling stemmed from a case launched by Epic Games in 2021, in which the company accused Apple of monopolistic behaviour in its App Store for digital goods and services. Although the court did not declare Apple a monopoly, it ruled that the company must allow developers to include links to external payment systems.
Judge Yvonne Gonzalez Rogers found that Apple had “willfully” violated an injunction she issued during the trial, creating new obstacles to competition in the App Store and even misleading the court. She ordered the injunction to be enforced.
Apple has expressed disagreement with the ruling, stating it intends to appeal, but has committed to complying with the court’s decision.
Epic Games’ legal battle with Apple over the App Store began after the company accused Apple of charging excessive “junk fees” of 15-30% for transactions made within the App Store. Sweeney shared his belief that these fees have now been effectively ended in the US, mirroring changes that took place in Europe under the Digital Markets Act, which came into effect last year and requires US tech giants to open their platforms to more competition.
Apple’s recent changes, which include allowing developers to use alternative payment methods without charging a commission or fee, represent a shift towards more developer-friendly policies.
Creative Strategies analyst Carolina Milanesi pointed out that while these changes may signal a shift in Apple’s approach, the company remains a key player in the services sector, with revenue from subscriptions, iCloud, and the App Store continuing to contribute significantly to its bottom line.
“The App Store is still the best way for smaller developers to reach consumers without the large investment needed to set up alternative payment systems,” Milanesi added, emphasising that Apple’s revenue from ads and subscriptions will continue to be substantial.
As the tech giant prepares for its annual developers conference in June, the App Store will remain a significant revenue stream, even as Apple adjusts its policies to maintain better relations with developers.
