Apple changes EU app business terms

Under the revised model, Apple will charge commissions on digital goods and services

Apple is changing its business terms for apps distributed in the European Union following discussions with the European Commission. The changes address disagreements over alternative app distribution and consolidate developers operating in the EU under a single set of business terms.

Developers can sign the updated terms immediately, with the changes taking effect on October 1. The revised framework introduces new commission structures, removes several existing fees and expands eligibility for alternative app marketplaces and web-based app distribution.

Apple introduces unified EU developer terms

Under the revised model, Apple will charge commissions on digital goods and services. The Core Technology Fee will be replaced by a Core Technology Commission, set at 5 percent of digital transactions in apps distributed outside the App Store.

The updated terms also remove the initial acquisition fee and store services fee. Apple is also changing commission rates for apps distributed through the App Store, alternative payment systems and alternative distribution channels.

Commission rates change across EU app distribution

For App Store apps using Apple In-App Purchase, the commission will be 26 percent. The rate will be 15 percent for most developers, including participants in the App Store Small Business Program, Mini Apps Partner Program and Video Partner Program, as well as auto-renewing subscriptions after their first year.

For App Store apps using alternative payment processing, the commission will be 20 percent, falling to 10 percent for developers in the specified programs. Apps that link to the web to complete purchases will incur a 15 percent commission, or 10 percent for eligible developers in those programs.

Apps distributed through alternative app marketplaces or directly via the web will be subject to a 5 percent Core Technology Commission.

Apple allows alternative payments alongside In-App Purchase

The revised terms will allow developers in the EU to offer Apple In-App Purchase alongside alternative payment options. Previously, developers could not offer both options in the same app in the EU.

Developers will need to follow presentation requirements intended to give users a consistent and transparent purchasing experience. Developers distributing apps in the EU must also select their payment options and maintain those choices for 12 months.

Child protections apply to alternative payments

Apple is also introducing child safety measures for alternative payments in the EU. Apps in the Kids category on the App Store will not be permitted to include links to websites for completing transactions, reducing the risk of fraud and scams targeting children.

Apps using alternative payment processing or linking to websites for transactions must include a parental gate for users under 18. For users under 13, App Store apps cannot link to websites for transactions. In EU member states where parental consent is required for digital actions involving children over 13, the protections will be adjusted accordingly.

Apple expands alternative distribution eligibility

Apple is also broadening eligibility for companies that want to operate alternative app marketplaces or distribute apps through the web in the EU. Eligible organisations will need to meet at least one of several criteria, including a moderate financial-stability threshold assessed by Dun & Bradstreet, being publicly traded or owned by a publicly traded company, receiving venture funding from an established investment firm, completing a financial audit by a licensed accountant, or being a government entity, educational institution or nonprofit.

Web distribution remains limited to the EU and does not have the marketplace operator oversight associated with the App Store. Apple therefore says it will continue requiring every alternatively distributed app to undergo Notarization, a baseline review focused on basic functionality and protection against serious threats.

www.apple.com

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