Apple Announces Changes for Apps in the EU

Apple unveiled changes to its business terms for apps in the European Union. The company stated that the changes were made following close collaboration with the European Commission.

These changes resolve Apple’s disagreements with the EC over business terms and alternative distribution. They also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms. Developers can already sign the new terms, and changes will go into effect on October 1. Apple has also worked with the EC to implement the child safety measures for alternative payments similar to those already in place in other markets.

Under this new model, Apple will charge a commission on the sale of digital goods and services. The Core Technology Fee, a per-install fee for developers that achieve extraordinary scale, will be replaced by the Core Technology Commission, a simple 5 percent commission on digital transactions in apps distributed outside the App Store. The new terms also eliminate the initial acquisition fee and store services fee.

In addition, Apple is adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps. For App Store apps using Apple In-App Purchase, the commission will be 26 percent. For App Store apps using alternative payment processing, the commission will be 20 percent. For App Store apps that link out of the app to complete purchases, the commission will be 15 percent. For apps distributed via alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission.

The company warned that the web distribution, which is available only in the EU, does not have a marketplace operator standing behind it or ongoing oversight like the kind Apple provides for the App Store. This means that a bad actor distributing via the web can operate for a long time, the company added. To keep EU users safe, Apple said it will continue to require every alternatively distributed app to go through Notarization, a baseline review focused on basic functionality and protection from serious threats.