Apple adds near-infinite 20 percent fee for developers in latest EU update

Apple is adjusting App Store rules in the EU after regulators accused the company of violating the Digital Markets Act (DMA) in June. At first sight, the updated rules appear to give developers more freedom when linking external purchases – but a restrictive new fee structure will force developers to pay Apple a commission for sales made around the world. any platform, not just iOS, as long as they include external links.

Starting this fall, all developers in the EU will be able to include links leading to purchases outside of their apps. THE updated rules will allow developers to inform their users about offers on the web, in another app store, or otherwise “at a destination of their choosing.” It allows developers to include as many links as they want and gives users the option to disable scary screens in the app.

But using the feature comes with such high fees that it’s hard to imagine any developer using it. After a developer adds external links, Apple charges a new “store services fee” on the sale of digital goods and services that occurs within one year from the date the user installs the app – on any platform, even if the user never clicks the link. external link. This could include purchases made from an alternative app store or a developer’s website on any type of device, such as a Windows computer. And if the user reinstalls or updates the app, the watch restarts. The fee is 20% for apps offered only through the App Store; Apps that add support for third-party app stores pay 10%, although they face other associated fees.

Additionally, Apple is implementing a 5% “initial acquisition fee” on digital goods and services purchased “on any platform” within one year of the user’s first app installation. In total, this means that Apple can receive a commission of up to 25% on purchases made within a year of installation, including off-platform subscriptions and automatic renewals. Developers in Apple’s Small Business Program and those who charge for “qualified” auto-renewing subscriptions for more than a year will face lower fees. Fees also do not apply to subscriptions or automatic renewals purchased before downloading the app.

“Apple’s terms make it completely uneconomical for developers to distribute their apps through the Apple App Store and competing iOS app stores,” Tim Sweeney, CEO of Epic Games, said in a post on X discussing the new rules.

Apple said the fees reflect the expansive value its app store offers. The initial acquisition fee “reflects the value the App Store provides by connecting developers with customers in the EU,” while the store services fee “reflects the ongoing services and capabilities Apple provides to developers.”

Outside the EU, Apple charges a commission of up to 30% on in-app purchases. Apple also has strict rules regarding links to external purchasing optionssuch as requiring developers to follow specific formatting guidelines, only show external links once, and display a notification (or “scary screen”) to warn users that they are exiting the app. This is all part of the reason Spotify doesn’t sell audiobooks in its iOS app.

The new fee structure comes as Apple tries to avoid further action by the EU. In June, regulators accused the company of violating DMA rules against anti-targeting or preventing developers from pointing users to cheaper purchasing options outside of the App Store. The EU also fined Apple 1.84 billion euros (about $2 billion) for preventing music streaming apps like Spotify from displaying cheaper subscription offers outside the App Store.

The EU is currently investigating Apple for its restrictive policies on alternative app stores and its new Core Technology Tax, which requires third-party app store developers to pay 50 cents per install of apps over 1 million of downloads. The DMA came into force in March, with the aim of regulating big technologies to promote competition in digital markets.

“We are currently evaluating Apple’s deliberately confusing proposal,” Spotify spokeswoman Jeanne Moran said in a statement emailed to The edge. “Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements such as prices and connections is unacceptable. We call on the Commission to accelerate its investigation, impose daily fines and enforce the DMA.”

Apple has already made some small changes to its DMA compliance plans after facing criticism from developers and EU regulators earlier this year. It announced that free app developers won’t have to pay the Core Technology Fee to access external app stores, and it also gave developers a one-time option to opt out of the company’s new business terms, but only if they didn’t. already launch an alternative app store or use a third-party payment method.

Apple’s latest changes offer some improvements, but they come with the same caveats that make it harder for developers to do business.