Apple is tweaking its App Store rules in the European Union after regulators accused the company of violating the Digital Markets Act (DMA) in June. At first glance, Updated rules This new fee appears to give developers more freedom when it comes to third-party purchases — but the restrictive new fee structure will force developers to pay a commission to Apple for sales made through any Platform, not just iOS, as long as it includes external links.
Starting this fall, all developers in the European Union will be able to include links to purchases outside of their apps. The rules have been updated. This feature will allow developers to tell their users about offers available on the web, in another app store, or “in a destination of their choice.” It also allows developers to include an unlimited number of links and gives users the option to disable in-app scare screens.
But using this feature comes with a fee so steep that it’s hard to imagine any developer using it. Once a developer adds external links, Apple charges a new “Store Services Fee” on sales of digital goods and services made within one year of the user installing the app — on any platform, even if the user never clicked the external link. This can include purchases made on an alternative app store or the developer’s website from any type of device, such as a Windows PC. If the user reinstalls or updates the app, the clock restarts. The fee is 20 percent for apps offered only through the App Store; apps that add support for third-party app stores pay 10 percent, though they will face other associated fees.
Additionally, Apple charges a 5% “initial purchase fee” on digital goods and services purchased “on any platform” within one year of a user first installing an app. In total, this means Apple could take a commission of up to 25% on purchases made within one year of installation, including off-platform subscriptions and auto-renewals. Developers in Apple’s small business program and those who charge for “qualifying” auto-renewing subscriptions for more than one year will face a lower fee. The fee also does not apply to subscriptions or auto-renewals purchased before an app is downloaded.
“Apple’s terms make it completely uneconomical for developers to distribute their apps through the Apple App Store and competing iOS app stores,” said Tim Sweeney, CEO of Epic Games. He said in a post on X Discussing the new rules.
Apple said the fees reflect the tremendous value its App Store provides. The initial acquisition fee reflects “the value the App Store provides in connecting developers with customers in the EU,” while the App Store Services fee reflects “the ongoing services and capabilities Apple provides to developers.”
Outside the EU, Apple charges a commission of up to 30 percent on in-app purchases. Apple also charges Strict rules on links to external purchasing optionsSuch as requiring developers to follow specific formatting guidelines, showing external links only once, and displaying a notification (or “scare screen”) to warn users not to leave the app. These are all part of the reason Spotify doesn’t sell audiobooks within its iOS app.
The new fee structure comes as Apple tries to avoid further action from the European Union. In June, regulators accused the company of violating DMA rules against the counter-directive, or preventing developers from directing users to cheaper purchasing options outside the App Store. The EU has also fined Apple €1.84 billion (about $2 billion) for preventing music streaming apps like Spotify from offering cheaper subscription deals outside the App Store.
The EU is currently investigating Apple over its restrictive policies on alternative app stores and its new core technology fee, which requires developers in third-party stores to pay 50 euro cents per install for apps with more than 1 million downloads. The core technology fee came into effect in March, aiming to regulate big tech companies to boost competition in digital markets.
“We are currently evaluating Apple’s intentionally confusing proposal,” Spotify spokeswoman Jane Moran said in an emailed statement. The Edge“Apple is once again blatantly ignoring the basic requirements of the Digital Markets Act (DMA). The European Commission has made it clear that charging recurring fees for basic elements such as pricing and linking is unacceptable. We call on the Commission to accelerate its investigation, implement daily fines and enforce the DMA.”
Apple has already made some minor changes to its DMA compliance plans after facing criticism from developers and regulators in the EU earlier this year. It announced that free app developers would no longer have to pay a technology fee to access third-party app stores, and it gave developers a one-time option to opt out of the company’s new terms of business, but only if they haven’t already launched an alternative app store or used a third-party payment method.
Apple’s recent changes offer some improvements, but they come with the same caveats that make it harder for developers to do business.
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