Apple changes fees for alternative app stores in EU

Apple announced on Tuesday (Aug 18) that it will change its fee structure for digital transactions in apps distributed outside its App Store in the European Union, as it seeks to comply with the Digital Markets Act. The company will eliminate the initial acquisition fee and store services fee previously charged, instead implementing a 5 per cent commission on digital transactions in alternative app stores and on the web.

For apps using alternative payment processing, Apple will charge a 20 per cent commission, though fees could decrease to 10 per cent under its small business programme. The changes aim to address concerns raised by EU antitrust regulators, who criticized Apple's previous conditions for discouraging developers from directing customers to alternative app distribution channels on iOS.

Apple said the new terms will resolve disagreements with the EU and European Commission, and will be similar to the commission-based terms offered in markets like Japan and Brazil. However, Epic Games, the creator of Fortnite, described the new commission as "junk fees" and argued that it fails to promote competition in the mobile app ecosystem, as required by the Digital Markets Act.