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Apple has new in-app transaction commission rates for EU devs

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Why This Matters

Apple's new in-app transaction commission rates in the EU aim to comply with the Digital Markets Act, introducing tiered fees based on developer programs and payment methods. These changes could impact developer revenue models and competition within the app ecosystem, especially as Apple navigates legal pressures and regulatory scrutiny. The adjustments reflect Apple's efforts to balance compliance with regulatory demands while maintaining its business interests.

Key Takeaways

Apple has laid out its new business terms for apps that will be distributed in the European Union. The new policies, which take effect starting October 1, will see the company's heavily debated Core Technology Fee replaced with a new Core Technology Commission that will be applied to in-app purchases.

There are several different permutations of commission rates based on how the app accepts a transaction. Devs that participate in the App Store Small Business Program, the Mini Apps Partner Program and the Video Partner Program will be offered discounted rates under each branch of the terms. "The majority of developers" using Apple In-App Purchase tech on apps distributed on the App Store apps will be charged a 15 percent fee, the company wrote. For devs outside those programs, the commission will be 26 percent.

App Store apps using alternative tools for payment processing will be charged a 20 percent fee, while for App Store apps that link out of the app to complete purchases, the fee will be 15 percent. Program members using either of those paths will have commission rates of 10 percent. Any apps that are distributed outside Apple's App Store will have a flat fee of 5 percent as their commission.

Apple has been involved in a convoluted, years-long legal battles over how it will conform to Europe's Digital Markets Act (DMA). Most recently, the company took a loss in its fight to avoid the more tightly policed "gatekeeper" status under the DMA. It may also be hauled into court on country-specific charges around potentially anti-competitive practices, most recently in Germany. There has been some movement in the US to loosen sideloading and alternative payment systems restrictions. Apple is also looking for US court support for taking a cut of 5 to 15 percent for transactions on third-party payments.