Apple has announced new business terms for apps distributed in the European Union, replacing its existing mix of fee structures with a unified model that takes effect October 1. Developers can agree to the new terms beginning today.
The changes follow discussions with the European Commission and apply to App Store distribution, alternative payment methods, alternative app marketplaces, and web distribution in the EU.
Core Technology Fee Replaced
Apple is replacing the Core Technology Fee, which charged qualifying developers per installation after reaching a scale threshold, with a Core Technology Commission. Under the new model, Apple will collect a 5% commission on digital transactions made in apps distributed outside the App Store through alternative marketplaces or the web.
The company is also eliminating its initial acquisition fee and store services fee.
New EU Commission Rates
For App Store apps using Apple In-App Purchase, the standard commission will be 26%. A reduced 15% rate will apply to developers in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, as well as qualifying auto-renewing subscriptions after their first year.
Apps using alternative payment processing while remaining in the App Store will pay a 20% standard commission or 10% under the eligible reduced-rate programs. Apps that link users to the web to complete purchases will pay 15%, or 10% at the reduced rate.
Apps distributed through alternative marketplaces or directly from the web will be subject to the 5% Core Technology Commission.
Apple Payments Can Be Offered Alongside Alternatives
Developers will be permitted to offer Apple In-App Purchase alongside alternative payment methods in the same EU app, an option that was not previously available under Apple's EU terms. Developers must select whether to offer Apple In-App Purchase, in-app alternative processing, links to web purchases, or a combination, and maintain that selection for 12 months.
Child-Safety Requirements
Apps in the App Store's Kids category will not be allowed to link to websites for transactions. Other App Store apps using alternative payments or external purchase links must present a parental gate to users under 18, while users under 13 cannot be directed outside the app for transactions. Apple says the age thresholds will increase where an EU member state requires parental consent beyond age 13.
Expanded Alternative Distribution Eligibility
Apple is broadening eligibility to operate an alternative app marketplace or distribute apps from the web. Organizations can qualify by meeting a Dun & Bradstreet financial-stability threshold, being publicly traded or owned by a public company, receiving funding from an established venture firm, completing an audit by a licensed accountant, or operating as a government entity, educational institution, or nonprofit.
Apps distributed outside the App Store will continue to require Apple Notarization. Additional details are available on Apple's developer support page for EU apps.
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