Apple squashes EU beef with new App Store rules

Apple is once again overhauling App Store rules in the European Union, which the company says will resolve its “disagreements with the Commission over business terms and alternative distribution.” As part of the changes, every developer that distributes apps will be moved to a single set of business terms, and digital transactions for apps distributed outside of the App Store will be subject to a Core Technology Commission fee of 5 percent. The new terms go into effect on October 1st. They will include a 26 percent commission for App Store apps that use Apple’s in-app purchase system, or a 20 percent fee for developers using alternate payment providers. Developers must also pay a 15 percent commission on purchases that link out of the app. Apple will reduce these rates for developers in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program. With the new terms, developers can offer both in-app purchases and alternative payment systems in the EU. However, developers must maintain the payment options they choose for 12 months “to provide consistency and clarity for users,” Apple says. There’s also a 5 percent Core Technology Commission on digital transactions in apps distributed on third-party app stores and the web. Apple will no longer charge an initial acquisition fee, store services fee, or the Core Technology Fee, a €0.50 per download fee that applied to apps for each annual install over 1 million. Web distribution is only available in the EU, Apple says, and the company has eligibility requirements in place for who can actually operate a third-party app marketplace over the web, like being a publicly traded company or having completed a financial audit from a “licensed accountant.” Apple changed its App Store rules last year to comply with the Digital Markets Act (DMA), a set of rules regulating Big Tech. The company has remained critical of the regulations and was fined last year after the Commission found that its App Store “anti-steering” practices violated the DMA. Apple lost its bid to exclude the App Store and iOS from the DMA last month. Apple’s updates also include new child safety features for the EU. Kids apps in the App Store can’t have links to websites for finishing transactions, and Apple won’t let App Store apps link out to websites for a purchase if a user is under 13 years old. Users under 18 will have to get permission from a parent or guardian when trying to make a purchase using an alternative payment method inside an App Store app.