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Apple’s App Store payment option proposal under review in EU: What it means for the company

The antitrust regulators in the European Union (EU) are reviewing a proposal submitted by Apple to comply with a previous order, which requires Apple to allow music streaming services like Spotify to inform users about payment options outside the App Store.

The European Commission has not yet confirmed if Apple’s proposal meets their requirements. “We are currently assessing whether Apple has fully complied with the decision,” a Commission spokesperson said, as per news agency Reuters.

“In general, if the Commission suspects that there is non-compliance with an adopted decision, it will send the undertaking concerned a Statement of Objections …” the spokesperson added.

What it means for Apple
Apple faces potential antitrust charges and additional fines if the EU competition enforcer deems their proposal not up-to-the-mark. This comes after the regulator issued a EUR 1.84 billion ($2 billion) fine last month alongside the initial order.

According to Apple’s proposal, music streaming services can include links to their websites within the app. These links would inform users about alternative ways to purchase digital content and services, bypassing the App Store.

Additionally, the proposal also allows services to request user email addresses. These emails would then be used to send a separate link to the platform’s website for purchasing digital music content or subscriptions.

It is to be noted that Apple will still charge a 27% fee on all purchases made through these external links, including auto-renewing subscriptions. The company previously used to charge up to 30% cut on transactions made on or via App Store.


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