Key facts
- Apple will implement a 5% commission on digital transactions for apps distributed outside its EU App Store.
- Apps using alternative payment processing will face a 20% commission, with a potential 10% rate for small businesses.
- Apps distributed via alternative marketplaces or the web will be subject to a 5% Core Technology Commission.
- These changes are designed to comply with the European Union's Digital Markets Act.
- The new fee structure will take effect on October 1.
Apple announced on Tuesday that it will introduce a 5% commission on digital transactions for apps distributed outside its App Store within the European Union. This revised fee structure aims to comply with the EU's Digital Markets Act (DMA), replacing a more complex system that had drawn criticism from regulators.
Under the new terms, apps utilizing alternative payment processing will be subject to a 20% commission, though this rate may decrease to 10% for participants in Apple's small business program. For applications distributed through alternative app marketplaces or directly via the web, Apple will levy a 5% Core Technology Commission. These changes also eliminate the initial acquisition fee and store services fee previously in place.
The updated terms, which become effective on October 1, are intended to resolve ongoing disagreements between Apple and the European Commission regarding app distribution and fees. The Commission acknowledged the changes, stating it welcomes them and will monitor their implementation closely. Apple indicated that these new terms will standardize conditions for developers operating within the EU, aligning them with practices in markets like Japan and Brazil, which have also sought to open up Apple's traditional business model.