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

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 the updates simplify the fee structure and "resolve Apple's disagreements with the Commission over business terms and alternative distribution."

The initial acquisition fee and store services fee are being removed for apps distributed outside of the ‌App Store‌, and Apple will now charge a 5% Core Technology Commission on digital purchases that replaces the prior per-install Core Technology Fee.

Commission rates are changing for ‌App Store‌ apps, alternative payments, and apps distributed through alternative app marketplaces or 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 purchase. The fee will be 15% for Small Business Program, Mini Apps Partner Program, and Video Partner Program participants. 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 in-app alternative payment processing will pay 20%. Developers in Apple's programs will pay 10%.
• Apps That Link Out of the App for Purchases - Apps that link to a website purchase option will pay 15%. Developers in Apple's programs will pay 10%.
• Alternative App Marketplace Apps - Apple will charge a 5% Core Technology Commission.
• Apps Distributed via the Web - Apple will charge a 5% Core Technology Commission.

Developers can offer in-app purchase options alongside alternative payment options in the EU, which is something Apple did not allow before. Apple says there will be presentation requirements so users have a consistent, transparent experience.

Developers distributing apps in the EU must select their payment options and maintain those options for 12 months before making changes to "provide consistency and clarity for users." Apple will still use a Notarization process for apps downloadable through the web and through alternative app marketplaces.

Apps in the Kids category or being used by children under 13 will not include links to websites to complete transactions. All apps that use alternative payment processing or link to a website for transactions have to include a parental gate if the user is under 18.

Apple is relaxing the rules for operating an alternative app marketplace. Apple used to require developers to have a one million euro standby letter of credit from an A-rated financial institution, but the new rules are as follows:

• Meet a moderate financial-stability bar as scored by Dun & Bradstreet.
• Are publicly traded or owned by a publicly traded company.
• Have received venture funding from an established investment firm.
• Have completed a financial audit by a licensed accountant.
• Are a government entity, educational institution, or nonprofit.

Developers can sign the new terms starting today, and the changes go into effect on October 1.

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