Apple Overhauls EU App Store Fees, Loosens Alternative Store Rules
Apple is simplifying its EU App Store fees, replacing its per-install fee with a 5% commission for apps distributed outside the App Store. The company is also making it easier for developers to operate alternative app marketplaces.
Apple has announced significant changes to its App Store policies in the European Union, responding to the Digital Markets Act (DMA). Effective March 2024, the company will replace its previous per-install fee with a 5% commission on apps distributed outside the official App Store. Additionally, Apple is streamlining the process for developers to launch and operate their own app marketplaces within the EU.
The updated fee structure maintains a 10% commission for apps and in-app purchases distributed through the App Store if they generate over €1 million in annual revenue, with a 3% commission for those below that threshold. The core change is the introduction of the 5% commission for all apps downloaded via alternative distribution methods, regardless of revenue.
Furthermore, Apple is eliminating the controversial €0.50 per annual install fee that was previously applied after the first million downloads. The company states these adjustments are in compliance with the EU's DMA, which aims to foster greater competition in the digital marketplace. The new rules permit developers to offer apps directly to consumers and utilize third-party payment processing.
Industry observers note that while these changes address some developer concerns, the new commission structure and the continued application of fees under certain circumstances have drawn criticism. The long-term impact on competition and developer profitability within the EU's digital ecosystem remains to be seen.