Apple is changing the way it charges developers in Europe, eliminating two controversial fees and cutting its take on purchases made outside the App Store.
The new terms take effect on Oct. 1 and result from negotiations with the European Commission regarding Apple’s compliance with the Digital Markets Act.
They replace a complicated fee structure introduced after the company was forced to open iOS to alternative app stores and payment methods in the EU.
For developers who distribute apps outside the App Store, the biggest change is straightforward: Apple is dropping its initial acquisition fee and store services fee. Instead, it will collect a 5% Core Technology Commission on digital purchases.
Apple still gets a cut
The amount developers pay will depend heavily on how they distribute their apps and collect payments.
Apps sold through the App Store using Apple’s payment system will carry a 26% commission, compared with the traditional 30% rate.
That falls to 15% for qualifying developers, including members of Apple’s Small Business Program, and for subscriptions after their first year.
Developers that stay in the App Store but use another payment processor will pay Apple 20%. Linking customers to a website to pay lowers that to 15%. Qualifying developers can get both rates down to 10%.
The cheapest route is to leave the App Store altogether. Apps distributed through an alternative marketplace or directly from a developer’s website will owe Apple the 5% technology commission on digital purchases.
More choice inside apps
The changes could also make buying something inside an iPhone app in Europe look different.
Developers will be allowed to offer Apple’s in-app purchasing system alongside another payment option in the same app. Previously, developers choosing an alternative payment method couldn’t also offer Apple’s system.
Apple will still set rules around how those choices are presented, and developers can’t freely jump between payment setups. Once they choose an alternative payment option or external purchase link, they must keep that configuration for 12 months.
Apple’s notarization requirement for apps distributed outside its store isn’t going away either.
Some apps face tighter rules
Apple is drawing a harder line around purchases involving children.
Apps in the Kids category, as well as apps used by children under 13, won’t be allowed to direct users to external websites to buy digital goods.
Apps offering other payment methods or purchase links must also put those options behind a parental gate for users under 18.
That means the broader payment freedom coming to EU apps won’t apply equally to all users or categories.
Opening the door to more app stores
Apple is also making it easier to launch a competing iPhone app marketplace. Developers previously needed a €1 million standby letter of credit from an A-rated financial institution to qualify. That requirement is being eliminated.
Apple will instead accept several ways to demonstrate financial stability, including a Dun & Bradstreet assessment, public-company status, established venture backing, or an audit by a licensed accountant. Governments, educational institutions and nonprofits can qualify as well.
Developers can agree to the new business terms beginning now, with the fee changes taking effect Oct. 1.
The result is a simpler system than the one Apple initially built for the DMA, though one principle remains unchanged: even when an iPhone app bypasses Apple’s store and payment system entirely, Apple still intends to collect a cut.
