App Store Revolution: Apple Must Remove Fees on External Purchases!

App Store Revolution: Apple Must Remove Fees on External Purchases!

In 2024, Apple was able to generate a total of more than $27 billion in commissions from its App Store. This impressive revenue resulted largely from the high demand for subscription models, which accounted for almost 48 percent of App Store revenue. Despite a slight downward trend in the number of app downloads, total spending in the App Store globally remained at around $91 billion

A US court issued a ruling requiring Apple to overturn a rule that allowed it to charge fees on third-party purchases. This made it legal for developers to point their users to alternative purchasing options outside of the apps. This decision particularly affects services such as Spotify, which are now able to display prices and direct purchase links for their subscriptions. But Apple also faces challenges, including a new class action lawsuit from app developers in the US.

Changes in the App Store

The adjustments in the App Store particularly affect the payment processes and the options for so-called “reader apps” that provide content such as music or audio books. The revised app review guidelines allow developers to integrate buttons and links to external purchasing options. This means that Apple is partially lifting its previously strict restriction on the in-app purchasing system in the US.

Spotify quickly responded to the changes and announced that a new update is available for US users. This allows users to view subscription prices directly in the app and switch between different models without having to use Apple's payment system. This could significantly impact the sales of Spotify and similar providers.

Impact on the market

The developments in the US could have far-reaching consequences, as observers expect them to potentially trigger a trend in other regions too. While Apple has the option to remove apps that violate the new rules from the store, it remains to be seen whether similar changes will be implemented outside the US.

Strong demand for premium services in areas such as streaming, fitness and language learning has positively impacted Apple's bottom line, even if the number of paid subscriptions represents only a small portion of the overall user base. Given the complex regulatory landscape and changing consumer behavior, the future of Apple's App Store remains exciting.