Apple will let EU developers link to external payment options — but they’ll have to pay Apple a cut of off-platform sales, even if the user never clicks the link.
After regulators accused the business of violating the Digital Markets Act (DMA) in June, Apple is making changes to its App Store policies in the European Union. Though a stringent new pricing structure would require developers to pay Apple a percentage for sales made across all platforms, not just iOS, as long as they include outside links, the modified guidelines first seem to provide developers greater latitude when linking to outside purchases.
All EU developers will be permitted to add links that direct users to make purchases outside of their apps starting this autumn. Developers will be able to notify consumers about offers on the internet, in another app store, or “at a destination of their choice” thanks to the amended regulations. Users can choose to turn off in-app scare screens, and developers are free to insert as many links as they like.
But using the feature comes with fees so steep that it’s hard to imagine any developer using it. Once a developer adds external links, Apple places a new “store services fee” on the sale of digital goods and services that occur within one year of the date the user installs the app — on any platform, even if the user never actually clicks the external link. This could potentially include purchases made on an alternative app store or a developer’s website from any type of device, such as a Windows computer. And if the user reinstalls or updates the app, the clock restarts. The fee is 20 percent for apps only offered through the App Store; apps that add support for third-party app stores pay 10 percent, though they’ll face other associated fees.
Furthermore, starting one year after a user installs an app for the first time, Apple would charge a 5 percent “initial acquisition fee” on digital products and services acquired “on any platform.” Thus, for all purchases done within a year of installation, including off-platform subscriptions and autorenewals, Apple may charge up to a 25 percent fee. Developers that charge for “qualifying” autorenew subscriptions lasting more than a year, as well as those in Apple’s small business program, will pay reduced rates. Additionally, subscriptions and that are bought before the program is downloaded are not subject to the fees.
The CEO of Epic Games, Tim Sweeney, stated in a post on X that the new regulations make it totally unfeasible for developers to publish their products through both the Apple App Store and other iOS app shops due to Apple’s restrictions.
According to Apple, the fees are commensurate with the vast value its app store offers. The store services fee “reflects the ongoing services and capabilities that Apple provides developers,” whereas the first acquisition cost “reflects the value the App Store provides when connecting developers with customers in the EU.”
Apple charges up to a 30 percent commission on in-app purchases made outside of the European Union. Apple also has tight standards regarding links to outside purchasing choices. For example, developers must adhere to certain formatting requirements, only display external links once, and alert users with a message (sometimes known as a “scare screen”) when they are about to leave the app. Due in part to all of this, Spotify does not offer audiobooks for sale through its iOS app.
The new fee structure comes as Apple attempts to avoid further action from the EU. In June, with violating the DMA’s rules against antisteering, or preventing developers from pointing users to cheaper purchase options outside the App Store. The EU also for preventing music streaming apps like Spotify from displaying cheaper subscription deals outside the App Store.
The EU is currently looking into Apple for its new Core Technology Fee, which mandates developers on third-party stores to pay 50 euro cents every install for apps with more than one million downloads, and its restrictive regulations on other app stores. With the intention of promoting competition in digital markets, the DMA entered into force in March and regulated big tech.
In a comment sent to The Verge via email, Spotify spokesperson Jeanne Moran states, “We are currently assessing Apple’s purposefully confusing proposal.” “Apple flagrantly ignores the essential provisions of the Digital Markets Act (DMA) once more. The European Commission has said unequivocally that it is not appropriate to charge recurrent fees for fundamental components like pricing and linkage. We demand that the Commission enforce the DMA, impose daily fines, and quicken its inquiry.
Following concerns from developers and EU authorities earlier this year, Apple has already made a few minor adjustments to its DMA compliance plans. It stated that free app developers would no longer have to pay the Core Technology Fee in order to access external app stores. Additionally, it provided developers with a one-time opportunity to withdraw from the company’s new terms of business, provided that they hadn’t already started a rival app store or used a third-party payment processor.
Although there are some improvements with Apple’s latest modifications, developers still have to deal with the same restrictions.
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