Apple today announced changes to its App Store policies and fees in the European Union to comply with the Digital Markets Act. Apple says the changes were made after “close collaboration” with the European Commission, and that the updates simplify the pricing structure and “resolve Apple’s disagreements with the Commission over commercial terms and alternative distribution.”
Upfront acquisition fees and store services fees are waived for apps distributed outside of the App Store, and Apple will now charge a 5% base technology fee on digital purchases that replaces the previous per-install base technology fee.
Commission rates change for App Store apps, alternative payments, and apps distributed through alternative app marketplaces or on the web.
- App Store apps with in-app purchase – Apple will charge a 26% fee for apps distributed through the App Store that use in-app purchasing. The fee will be 15% for participants in the Small Business Program, Mini Apps Partner Program, and Video Partner Program. It will also be 15% for auto-renewing subscriptions after their first year.
- App Store apps using alternative payments – Apps in the App Store that use an in-app alternative payment processing will pay 20%. Developers of Apple programs will pay 10%.
- In-app related apps for shopping – Applications linked to a purchase option on a website will pay 15%. Developers of Apple programs will pay 10%.
- Alternative apps from the app market – Apple will charge a 5% core technology commission.
- Applications distributed via the Web – Apple will charge a 5% core technology commission.
Developers can offer in-app purchase options as well as alternative payment options in the EU, something Apple did not previously allow. Apple says there will be presentation requirements so that users get a consistent and seamless experience.
Developers distributing apps in the EU must select their payment options and maintain those options for 12 months before making changes in order to “provide consistency and clarity for users.” Apple will continue to use a notarization process for apps downloaded via the web and through other app marketplaces.
Apps in the Kids category or used by children under 13 will not include links to websites where transactions can be made. All apps that use alternative payment processing or a website link for transactions must include parental controls if the user is under 18 years of age.
Apple relaxes rules for operating an alternative app marketplace. Apple previously required developers to have a €1 million standby letter of credit from an A-rated financial institution, but the new rules are as follows:
- Reach a moderate financial stability bar according to Dun & Bradstreet.
- Are listed on a stock exchange or belong to a listed company.
- Have received venture funding from an established investment company.
- Have carried out a financial audit by a chartered accountant.
- Are a government entity, educational institution, or nonprofit organization.
Developers can sign the new terms starting today and the changes will take effect on October 1.
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