Apple has announced significant revisions to its App Store policies and fee structures within the European Union, aiming to align with the requirements of the Digital Markets Act (DMA). These changes, developed in collaboration with the European Commission, are designed to simplify the fee system and address previous disagreements over business terms and alternative distribution methods.
Key updates include the elimination of the initial acquisition fee and store services fee for apps distributed outside the App Store. Instead, Apple will implement a 5% Core Technology Commission on digital purchases, replacing the former per-install Core Technology Fee.
The revised commission rates are as follows:
- App Store Apps Using In-App Purchase: A 26% fee applies to apps distributed through the App Store utilizing Apple’s in-app purchase system. Participants in the Small Business Program, Mini Apps Partner Program, and Video Partner Program will benefit from a reduced fee of 15%. Additionally, auto-renewing subscriptions will see a fee reduction to 15% after the first year.
- App Store Apps Utilizing Alternative Payments: Apps within the App Store that opt for alternative in-app payment processing will incur a 20% fee. Developers enrolled in Apple’s programs will pay a reduced fee of 10%.
- Apps Linking to External Purchase Options: Apps that direct users to external websites for purchases will be subject to a 15% fee, with a reduced rate of 10% for developers in Apple’s programs.
- Alternative App Marketplace Apps: A 5% Core Technology Commission will be charged for apps distributed through alternative app marketplaces.
- Apps Distributed via the Web: Similarly, a 5% Core Technology Commission applies to apps distributed directly through the web.
Notably, developers now have the flexibility to offer in-app purchase options alongside alternative payment methods within the EU—a practice previously restricted by Apple. To ensure a consistent and transparent user experience, Apple has established presentation requirements for these options.
To maintain clarity and consistency for users, developers distributing apps in the EU are required to select their payment options and adhere to them for a 12-month period before making any changes. Additionally, Apple will continue to employ a Notarization process for apps available through the web and alternative app marketplaces, upholding security and quality standards.
Specific provisions have been introduced for apps targeting younger audiences. Apps in the Kids category or those intended for users under 13 are prohibited from including links to external websites for transaction completion. Furthermore, all apps utilizing alternative payment processing or linking to external purchase options must incorporate a parental gate for users under 18, ensuring appropriate safeguards are in place.
Apple has also relaxed the requirements for operating an alternative app marketplace. Previously, developers were mandated to provide a one million euro standby letter of credit from an A-rated financial institution. This requirement has been removed, potentially lowering the barrier for developers seeking to establish alternative marketplaces.
These comprehensive changes reflect Apple’s ongoing efforts to comply with the DMA and adapt to the evolving regulatory landscape in the European Union. By revising its fee structures and policies, Apple aims to foster a more competitive and transparent app ecosystem, balancing developer interests with user experience and security considerations.
