After announcing changes to App Tracking Transparency in Europe, Apple has now unveiled a simplified App Store commission structure for developers in the region. Here are the details.

Apple revamps EU business terms for app developers

Apple recently announced eight changes to the App Tracking Transparency feature in Europe, following an investigation by a German antitrust regulator.

Now, the company has announced a new commission structure for the region that will take effect on October 1, including cutting its link-out commission to 15% and replacing the controversial Core Technology Fee with a 5% Core Technology Commission.

The move comes a little more than a year after Apple announced sweeping changes to the App Store in the EU, introducing an elaborate set of rules you can read more about here.

Here’s Apple:

Under this new model, Apple will charge a commission on the sale of digital goods and services. The Core Technology Fee, a per-install fee for developers that achieve extraordinary scale, will be replaced by the Core Technology Commission, a simple 5 percent commission on digital transactions in apps distributed outside the App Store. The new terms also eliminate the initial acquisition fee and store services fee.

Apple is also announcing new terms for App Store commission rates, alternative app payments, and apps distributed through alternative marketplaces or the web.

The new terms are:

For App Store apps using Apple In-App Purchase, the commission will be 26 percent. For the vast majority of developers, including those in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, and for auto-renewing subscriptions after their first year, it will be 15 percent.
For App Store apps using alternative payment processing, the commission will be 20 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
For App Store apps that link out of the app to complete purchases, the commission will be 15 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
For apps distributed via alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission.

Under the new terms, developers will also be able to offer Apple In-App Purchase alongside alternative payment options, either in-app or through links to the web, provided they follow Apple’s “presentation requirements” and maintain their chosen payment options for 12 months.

Today’s announcement also includes new child safety protections and measures for alternative payments in the EU, including:

Apps in the Kids categoryon the App Store will not include links to websites to complete transactions, to reduce the risk of fraud or scams targeting children.- For
users under 18 years old, all apps from the App Store that use alternative payment processing or link out to a website for transactions must include a parental gate that requires younger users to involve their parent or guardian before making a purchase.- For
users under 13 years old, apps from the App Store cannot link out to websites for transactions to protect against the risk of scams that target younger kids.

Apple adds that in EU member states where parental consent for digital actions is required for children older than 13, “these protections will scale accordingly.”

Finally, Apple’s newly announced changes also expand eligibility to operate alternative app marketplaces or distribute apps via the web.

The expanded qualification terms include:

  • Meet a moderate financial-stability bar as scored by Dun & Bradstreet.
  • Are publicly traded or owned by a publicly traded company.
  • Have received venture funding from an established investment firm.
  • Have completed a financial audit by a licensed accountant.
  • Are a government entity, educational institution, or nonprofit.

Apple notes that web distribution, which is currently only available in the EU, lacks the ongoing oversight provided by a marketplace operator, potentially allowing bad actors to “operate for a long time, harming users, before anyone catches it.”

As a result, Apple says it will continue to require all apps distributed via alternative channels to go through its Notarization process.

To learn more about today’s announcements, follow this link.

Update: In a statement to Bloomberg, a European Commission spokesperson said the Commission welcomes Apple’s changes, noting that they follow a “close dialogue” with the company. They added that the Commission will monitor Apple’s implementation of the new terms.

What do you think of Apple’s new rules for the EU? Let us know in the comments.

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