Apple Loosens App Store Price Control – Digital Journal

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Last year, Apple promised to expand pricing options for App Store deals as part of a $100 million deal with developers unhappy with paying commissions of up to 30 percent on transactions – Copyright AFP/File saul loeb

Apple on Tuesday announced the biggest update to the App Store’s pricing system since the store’s launch, allowing developers to charge from 29 cents to $10,000 for their offerings.

Enhanced pricing options that will be available for all transactions on the App Store in the spring of next year were touted alongside new capabilities aimed at making it easier for vendors to manage sales, returns, taxes and other features, Apple said. in a blog post

The departure from Apple’s 99-cent price floor comes as the Silicon Valley titan defends itself against accusations that it has monopoly control over the App Store that acts as the sole gateway to iPhones.

“These newly announced tools, which will begin rolling out today and continue through 2023, will create even more flexibility for developers to price their products while keeping them accessible to the hundreds of millions of users Apple serves in everyone,” the Cupertino-based company said.

“And, in turn, help developers continue to thrive on the App Store.”

Under the updated pricing system, developers will be able to choose from 900 price points, which is nearly 10 times the number of pricing options previously available to app creators, Apple said.

Apple agreed last year to expand pricing options on the App Store as part of a $100 million settlement to settle a class action lawsuit brought by US developers unhappy with paying commissions of up to 30 percent on transactions.

Apple said at the time that the deal was “the latest chapter in Apple’s longstanding efforts to make the App Store an even better marketplace for users and developers alike.”

Apple is also under political pressure in the United States and Europe to loosen its grip on the App Store, which has been criticized by the likes of Spotify, Fortnite maker Epic Games, and Twitter’s new owner Elon Musk.

In 2021, a California judge ruled against Epic, which had accused Apple of acting like a monopoly through its App Store.

But the judge also barred Apple from banning developers from including “external links or other calls to action that direct customers to purchase mechanisms” in their apps.

The ruling ruled that Apple can still require its payment systems to be used for in-app transactions.

In the EU, new legislation to be implemented in May 2023 will force Apple to open up its iPhone operating system to other payment options and app stores.

The Digital Markets Law will also prohibit the iPhone from offering preferential treatment to Apple’s own services, such as Apple Music or the Safari browser.

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