In response to the European Union’s Digital Markets Act (DMA), Apple has announced significant changes to its App Store policies within the EU. These adjustments aim to align with regulatory requirements and avoid substantial fines imposed by the European Commission.
Enhanced Developer Communication
Apple’s revised anti-steering rules now permit EU app developers to inform users about alternative payment options for subscriptions and in-app purchases outside the App Store. Developers can share these alternatives through various channels, including websites, alternative app marketplaces, and other applications. Notably, these links can be integrated within the app using web views or native experiences without the previously mandated warning screens or specific text requirements.
Introduction of a Complex Fee Structure
Alongside communication changes, Apple has implemented a more intricate fee system:
– Initial Acquisition Fee: A 2% fee on the sale of digital goods and services to new users, applicable for the first six months after the user downloads an app from the App Store. This fee is waived for developers in Apple’s Small Business Program and does not apply to existing users.
– Store Services Fee: Developers can choose between two tiers:
– Tier 1: A 5% fee providing access to essential services such as app reviews, manual updates, and antifraud measures.
– Tier 2: A 13% fee (reduced to 10% for Small Business Program members) offering additional services, including marketing tools, automatic updates, curation and personalization features, and app insights.
– Core Technology Commission (CTC): For apps utilizing the StoreKit External Purchase Link Entitlement (EU) Addendum to link to alternative payment methods, a 5% commission applies. This replaces the previous Core Technology Fee (CTF) of €0.50 per app install after exceeding 1 million downloads. Developers on standard terms in the EU will transition to this new structure by January 1, 2026.
Regulatory Background and Developer Reactions
These policy changes follow a €500 million fine imposed on Apple by the European Commission for noncompliance with the DMA. The Commission had set a deadline of June 26 for Apple to align its practices with the DMA to avoid further penalties.
Despite these adjustments, some industry leaders remain critical. Epic Games CEO Tim Sweeney described Apple’s new fee structure as blatantly unlawful and a mockery of fair competition in digital markets, expressing concerns that apps with competing payment systems are still disadvantaged within the App Store.
Conclusion
Apple’s recent updates to its EU App Store policies reflect an effort to comply with the DMA and mitigate regulatory fines. However, the complexity of the new fee structure and ongoing developer dissatisfaction suggest that debates over fair competition and platform control are far from resolved.
