Apple has announced changes to its fees for alternative app stores in the European Union, in an effort to comply with the EU’s Digital Markets Act. The company will charge a 5 percent commission on digital transactions in apps distributed outside its App Store, replacing a more complex system.
The new terms eliminate the initial acquisition fee and store services fee charged previously, and will be effective from October 1. Apple said the changes will resolve disagreements with the EU and the European Commission over these issues.
For apps distributed through alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission. App Store apps using alternative payment processing will face a 20 percent commission, although fees could fall to 10 percent under its small business program.
The European Commission has welcomed Apple’s changes, and will monitor their implementation. Apple will introduce a single set of terms for developers operating in the EU, similar to the commission-based terms it offers in markets such as Japan and Brazil.
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Epic Games, the maker of Fortnite, has criticized the new commission, calling it “junk fees” that do nothing to open up the mobile app ecosystem to competition, as required by the Digital Market Act. Epic Games has been in a legal battle with Apple contesting App Store fees.
Developers have long paid commissions of up to 30 percent on in-app purchases of digital goods and services. Apple is still litigating over what it can charge developers in the United States.
In practice, these changes mean that developers will have more flexibility in how they distribute their apps, and may be able to keep a larger share of their revenue. However, some developers, like Epic Games, may still feel that the fees are too high, and that the changes do not go far enough in promoting competition.
The European Commission will monitor the implementation of Apple’s new terms, to ensure that they comply with the Digital Markets Act. The Commission has the power to impose fines and other penalties if Apple fails to comply with the regulations.
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Apple’s changes are a significant development in the ongoing debate over app store fees and competition. The company’s decision to introduce a single set of terms for developers operating in the EU may help to simplify the process of developing and distributing apps, and may lead to more innovation and competition in the market.
They will be effective from October 1.
The new terms will apply to all developers operating in the EU. Apple has said that it will work with developers to ensure a smooth transition to the new system.