Apple is changing its App Store rules in the EU after regulators accused the company of breaking the Digital Markets Act (DMA) in June. On the face of it, the updated rules appear to give developers more freedom when it comes to third-party purchases — but a restrictive new fee structure will force developers to pay Apple a commission on sales made across 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 that lead to purchases outside of their apps. The updated rules will allow developers to tell 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 an option to disable in-app scare screens.
But using the feature comes with such high fees that it’s hard to imagine any developers using it. Once a developer adds external links, Apple imposes a “store services fee” on sales of digital goods and services that occur within a year of the date the user installs the app — on any platform, even if the user never actually clicks external link. This can include purchases made in an alternative app store or on a developer’s website from any type of device, such as a Windows computer. And if the user reinstalls or updates the app, the clock resets. 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’ll face other associated fees.
In addition, Apple is implementing a 5 percent “initial purchase fee” on digital goods and services purchased “on any platform” within a year of when a user first installs the app. Together, this means Apple can get up to a 25 percent commission on purchases made within a year of installation, including off-platform subscriptions and automatic renewals. Developers in Apple’s small business program and those paying for “qualifying” renewal subscriptions authorized for more than a year will face lower rates. Charges also do not apply to subscriptions or auto-renewals purchased before the app is downloaded.
“Apple’s terms make it completely uneconomic for developers to distribute their apps through both the Apple App Store and competing iOS app stores,” said Tim Sweeney, CEO of Epic Games, in a post on X discussing the new rules.
Apple said the fees reflect the great value its app store offers. The initial purchase fee “reflects the value the App Store provides when 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 up to a 30 percent commission on in-app purchases. Apple also has strict rules regarding links to external shopping options, such as requiring developers to follow specific formatting guidelines, display external links only once, and display a notification (or “fear screen”) to warn users that they are leaving the application. This is all part of why Spotify doesn’t sell audiobooks within its iOS app.
The new fee structure comes as Apple tries to avoid further action from the EU. In June, regulators accused the company of violating the DMA’s rules against anti-directing or preventing developers from directing users to cheaper purchase options outside the App Store. The EU also fined Apple 1.84 billion euros (about $2 billion) for preventing music streaming apps like Spotify from showing cheaper subscription deals outside the App Store.
The EU is currently investigating Apple over its restrictive policies on alternative app stores and the new core technology fee, which requires developers on third-party stores to pay 50 euro cents per install for apps with over 1 million downloads. The DMA came into force in March, with the aim of regulating big tech to promote competition in digital markets.
“We are currently evaluating Apple’s intentionally confusing proposal,” Spotify spokeswoman Jeanne Moran said in an emailed statement. threshold. “Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that the imposition of recurring charges for basic elements such as price and connection is unacceptable. We call on the Commission to expedite its investigation, enforce the daily fines and enforce the DMA.”
Apple has already made some minor changes to its DMA compliance plans after facing criticism from developers and EU regulators earlier this year. It announced that developers of free apps will not have to pay the basic technology fee to access external app stores and also gave developers a one-time opportunity to opt out of the company’s new business terms, but just if they don’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.
