Apple has made updates to its terms and policies for app developers in the European Union (EU) in an effort to comply with the EU’s Digital Markets Act. While the new terms allow developers to link to outside payment systems and promote other platforms, Apple has also introduced new fees that enable them to take a percentage of each purchase. The company recently settled an antitrust case with the EU, which required them to open up their Apple Pay platform to outside payment options.
The new rules, which can be found on Apple’s developer support website, outline the percentages that Apple will take from each purchase, regardless of where it is made. The fee structure varies depending on whether developers enroll under the new terms or are part of Apple’s existing terms.
For developers who enroll under the new terms, Apple will take a 5% initial acquisition fee on all sales of digital goods and services made within a 12-month period after the initial app install. Additionally, there is a 10% store services fee for all sales made within a 12-month period after any install, including re-installs.
Developers who are already part of Apple’s existing terms face even higher fines for adding external links. They will be charged a 20% fee for a 12-month period after install, although this number decreases to 7% for participants in the App Store Small Business Program.
These new policies have received criticism from some of the companies behind the App Store’s most popular apps. Tim Sweeney, CEO of Epic Games, expressed his dissatisfaction with Apple’s actions, stating, “Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.” Spotify also voiced their concerns, stating, “At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA).”
These criticisms highlight the ongoing tension between Apple and app developers, as well as concerns over Apple’s control and fees within the App Store. The EU’s Digital Markets Act aims to regulate and promote fair competition in the digital market, and it is clear that Apple’s new terms and fees are being closely scrutinized by both developers and regulatory bodies.
As Apple continues to make adjustments to its policies and fees, it will be interesting to see how these changes impact the relationship between Apple and app developers, and whether further regulatory action will be taken to ensure fair competition and consumer protection in the digital market.