Apple is changing how its developers in the European Union are charged for apps both in and outside its App Store, in a move that it says will resolve disagreements with the European Commission.
The company is also simplifying its terms of business in the EU, making it less complex for developers.
The move comes after what the company described as “close collaboration” with the European Commission over opening up its devices to alternative distributors. It has been battling with regulators over opening up its once-closed ecosystem, warning it introduced risks for Apple users. Under the Digital Markets Act, Apple was forced to change how users could access software for its mobile devices and tablets, opening it to alternative stores.
Apple said the changes could see most developers pay less to the company, with the standard commission of 30 per cent being cut to 26 per cent.
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The new terms will see Apple charge a commission on the sale of digital goods and services, eliminating the 50 cent core technology fee that was charged per install over a 1 million threshold, the initial acquisition fee Apple charged and the store services fee. Instead, developers will pay a 5 per cent commission on digital transactions in apps distributed outside the App Store.
The company is also adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps. Those apps using Apple in-app purchases will pay a commission of 26 per cent, with those in the App Store small business programme, mini apps partner programme and video partner programmes paying 15 per cent. Auto-renewing subscriptions after the first year will also pay 15 per cent.
Apple will charge a 20 per cent commission for App Store apps using alternative payment processing, discounted to 10 per cent for those participating in certain programmes.
Developers can now offer Apple In-App Purchase as an option alongside alternative payment options, but must keep those options in place for 12 months. However, Apple said there was no obligation on developers to offer Apple’s in-app system, a move it said would reduce user choice and impact security, privacy and safety.
Apple said it was also implementing child safety measures for alternative payments to help protect against scams. That includes parental gates for purchases in apps from the App Store that use payment options outside Apple’s system for under-18s, and barring links to websites to complete transactions for apps in the kids’ category on the App Store.
Under the changes, developers distributing apps in the EU will move to a single set of business terms. Previously, developers had the option to move to the new terms for EU developers or stay on the original terms.
The tech giant said it would also widen the number of companies it allows to operate an alternative app marketplace or distribute apps via the web in the EU, once they meet certain criteria.
