Apple Overhauls EU App Store Fees to Settle Digital Markets Act Dispute

Apple has revised its App Store policies and fees in the European Union in response to compliance with the Digital Markets Act. The alterations were made following extensive collaboration with the European Commission, aimed at resolving disputes over business terms and alternative distribution methods. The initial acquisition fee and store services fee have been eliminated for apps distributed outside of the App Store, and Apple will now assess a 5% Core Technology Commission on digital purchases.

This fee supersedes the earlier per-install Core Technology Fee. Commission rates are being adjusted for App Store apps, alternative payments, and apps distributed through alternative marketplaces or the web. For in-app purchase-based apps in the App Store, Apple will charge 26%, with a lower rate of 15% for Small Business Program, Mini Apps Partner Program, and Video Partner Program participants.

Auto-renewing subscriptions will see a 15% rate commencing from the second year. Apps utilizing alternative payment processing will incur a 20% fee, with a reduced rate of 10% for developers in Apple's programs. Apps that link to a web-based purchase option will have a 15% fee, with a 10% rate for developers in Apple's programs.

Apps distributed through alternative app marketplaces or the web will also be subject to a 5% Core Technology Commission. Apple maintains that developers can offer in-app purchase options alongside alternative payment options in the EU, a practice that was previously prohibited. The company has introduced presentation requirements to ensure a consistent and transparent user experience.

Developers distributing apps in the EU must choose their payment options and maintain them for a period of 12 months, before any modifications can be implemented, to maintain consistency and clarity for users. Apple will continue to employ a Notarization process for apps downloadable through the web and alternative app marketplaces.

Apps in the Kids category or used by children under 13 will not contain links to external websites for transactions. Apps using alternative payment processing or linking to a website for transactions must include a parental gate for users under 18. Apple is also relaxing the rules for operating an alternative app marketplace. The new requirements stipulate that developers must meet a moderate financial-stability bar as assessed by Dun & Bradstreet, be publicly traded or owned by a publicly traded entity, have received venture funding from an established investment firm, have undergone a financial audit by a licensed accountant, or qualify as a government entity, educational institution, or nonprofit.

Developers can commence adhering to the updated terms from today, with the changes becoming effective from October 1.