Following discussions with the European Commission, Apple has announced an overhaul of its commercial terms regarding app development and distribution in the EU. These changes aim to simplify its model and comply with the Digital Markets Act (DMA) requirements, with implementation primarily scheduled for October 1.
Changes to Commissions and Fees
Apple will replace the former Core Technology Fee—which was charged per installation to developers reaching a certain scale—with a Core Technology Commission of 5% on digital transactions made within applications distributed outside of the App Store. Furthermore, the updated terms remove both the Initial Acquisition Fee and the Store Services Fee.
Under this new framework, several commissions are scheduled:
- Apps distributed through the App Store and utilizing Apple In-App Purchase (IAP) will be subject to a 26% commission, which is reduced to 15% for developers participating in programs such as the Small Business Program, Mini Apps Partner Program, or Video Partner Program. This reduced rate also applies to auto-renewing subscriptions after their first year.
- For apps that use their own alternative payment system within the App Store, the commission will be 20%, dropping to 10% for eligible developers.
- Purchases made after being redirected to an external site will face a 15% commission, reduced to 10% for eligible developers.
- For apps distributed via an alternative marketplace or directly from the web, the Core Technology Commission is set at 5%.
Modifications to Payment and App Policies
In addition to the fee simplification, Apple is modifying its payment policies. Developers will now be able to offer Apple In-App Purchase alongside alternative payment solutions in the EU. Once these payment options are chosen, they must be maintained for twelve months.
The new measures also affect children's apps. Apps categorized as Kids can no longer provide web links for transactions; alternatively, payments must be protected by parental controls. For users under 13, external links will be prohibited, and alternative payments must also be subject to parental control. For users aged 13 to 17, both alternative payments and external offers must be placed behind parental controls. Note that these age thresholds may vary depending on the rules applicable in each EU country.
Apple has also relaxed criteria for running an alternative marketplace or distributing apps directly from the web in the EU. Several new financial standards now qualify developers, including having listed company status, obtaining funding from an established venture capital fund, or completing a financial audit by a certified professional. However, applications distributed through these alternative channels will still be required to undergo Apple's notarization process.
Reactions and Compliance
The European Commission welcomed these changes, stating that it will monitor their implementation. Conversely, Epic Games, which has long opposed Apple's App Store rules, has criticized the new commissions, arguing that they still do not provide the level of competition required by the DMA.
Developers interested in viewing the new terms and various payment and distribution options can find details on the Apple Developer website.
