Apple Revamps EU App Store Fee Structure and Lowers Third-Party Marketplace Entry Requirements

Deep News
08/19

Apple announced on Tuesday a simplified commission framework for the European Union market, aiming to resolve disagreements with the European Commission over commercial terms. Under the new proposal, the company will eliminate the per-install technology fee, replacing it with a uniform 5% commission on digital goods transactions for apps distributed outside the App Store or via the web.

The company also adjusted rates for alternative payment methods and its own in-app purchase system, while easing conditions for developers seeking to operate alternative app marketplaces. This move marks the latest attempt by Apple to align its App Store business terms with EU regulations, following years of back-and-forth disputes with regulators over the complexity and fairness of its previous terms.

Last year, Apple had already revised its EU App Store fees after regulators fined the company €500 million for violating the Digital Markets Act (DMA) and threatened further penalties. However, that adjustment introduced a more intricate fee structure that critics labeled as "malicious compliance." The old system included an initial acquisition fee, a store services fee, and various service tiers based on developer needs.

Now, the company has unveiled its latest revision, with the central highlight being a flat 5% commission on transactions from apps distributed outside the App Store—whether through third-party marketplaces or the web. At the same time, the new terms set Apple's in-app purchase rate at 26%, down from the traditional 30%.

However, Apple noted that most developers can still benefit from a reduced 15% rate through special programs, such as the App Store Small Business Program, the Small App Partner Program, and the Video Partner Program. Auto-renewable subscriptions also qualify for the discounted rate after the first year. Additionally, apps using alternative payment methods will incur a 20% commission, which drops to 10% for participants in the aforementioned programs.

The company also stated that once developers choose their payment method—whether Apple's in-app purchase, external payment, or a combination of both—they will be locked into that choice for 12 months. Apple has also established an exception clause for developers permitted to use external links within their apps, though apps in the children's category are barred from using such links for security reasons. For users under 18, purchases made outside the App Store require parental consent.

Notably, the new rules relax entry requirements for developers operating alternative app stores, allowing businesses that meet certain financial stability criteria to establish their own marketplaces. Previously, Apple required developers to either demonstrate substantial financial backing or prove at least two years of membership in the Apple Developer Program, along with over one million first-time annual installs in the EU during the prior calendar year. Now, Apple no longer mandates that developers achieve those milestones—though it remains an option—and has added alternative ways to demonstrate financial support, including public company status, financial audits, and qualified venture capital backing.

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