Apple Announces New EU App Fees, Giving Developers More Options

Apple has announced changes to its App Store rules in the European Union, giving developers more freedom over how they distribute apps and process payments.The company said on Aug. 18 that developers will be able to offer Apple’s own payment system alongside alternative payment options.They will also be able to distribute apps through third-party app stores or directly from their websites.Apple said it was replacing its Core Technology Fee, which charged some developers based on the number of app installations, with a simpler 5 percent commission on digital transactions made through apps distributed outside the App Store.The company also removed other fees, including the initial acquisition fee and store services fee.The changes, according to Apple, followed “close collaboration with the European Commission” and would resolve disagreements over its business terms and alternative ways of distributing apps.The new rules will move all developers operating in the EU onto one set of terms and will take effect on Oct. 1.The European Commission welcomed the changes, saying they followed months of discussions with Apple after regulators found last year that parts of the company’s App Store rules did not comply with the Digital Markets Act (DMA).The DMA is an EU law designed to increase competition by limiting the market power of large technology companies, known as “gatekeepers.”A commission spokesperson told The Epoch Times in an Aug, 19 emailed statement that the commission would continue monitoring how the company applies the new rules under the EU law.“Under the DMA, users in the EU have a right to full and effective choice of alternative app distribution channels,” the spokesperson said.FeesApple will still charge commissions on apps sold through its own App Store.Apps using Apple’s payment system will generally face a 26 percent commission, although many developers will continue to qualify for a reduced 15 percent rate.Developers using alternative payment systems inside their apps will pay a 20 percent commission, or 10 percent if they qualify for Apple’s reduced-rate programs.Apps that direct users to websites to complete purchases will face a 15 percent commission, reduced to 10 percent for eligible developers. Apps distributed through alternative app stores or directly through the web will pay the new 5 percent commission.Apple said developers must keep their chosen payment options in place for 12 months to give users a more consistent experience.Epic Games, the maker of “Fortnite” and one of Apple’s biggest critics in the App Store dispute, said the new fees still limit competition.Epic described Apple’s new commission structure as “junk fees” and said it “does nothing to open up the mobile app ecosystem to competition, as required by Digital Market Act.”“If the Commission accepts the terms and drops their ongoing enforcement actions, the law will become meaningless and consumers and developers will not experience the benefits it was designed to provide,” Epic said in an Aug. 18 post on X.Japan and Brazil have also sought to open Apple’s app distribution system, while the company continues legal battles over App Store fees in the United States.Child Safety RulesApple also said it would introduce additional protections for children using apps with alternative payment options.The company said apps in the Kids category would not be allowed to direct children to external websites to complete purchases.Apple also said apps using alternative payments or external purchase links would need parental approval features for users under 18. For children under 13, apps would not be allowed to link to external websites for purchases.The company said the measures were designed to reduce the risk of fraud and scams targeting children.Reuters contributed to this report.