GoKawiilApple today announced changes to its business terms for apps in the European Union, following close collaboration with the European Commission. These changes resolve Apple’s disagreements with the Commission over business terms and alternative distribution. They also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms. Developers can sign the new terms today, and changes will go into effect on October 1.
Unified Business Terms for Developers That Distribute Apps in the EU
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.
In addition, Apple is adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps. Each of these commissions reflects the many ways Apple creates value for developers’ apps, whether they use the App Store and/or Apple In-App Purchase.
Under the new terms:
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.
Alternative Payments and Apple In-App Purchase
... continue reading