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Apple has announced further changes to how apps operate in the European Union. The company prepared them in cooperation with the European Commission, responding to earlier concerns about the rules for selling and distributing apps. The new rules are also intended to simplify commercial terms, as developers operating in the EU will be subject to a single set of rules. The new terms are available now, but they will take effect on 1 October.
Apple changes commissions and payment rules in the App Store
One of the most significant changes will be the introduction of a new commission model for digital goods and services sold through apps. Apple will replace the existing fee for base technologies with a new 5 per cent commission on digital transactions in apps distributed via the App Store. The company is dropping the initial user-acquisition fee and the store services fee. Commissions will also change for apps that use alternative payment methods. For App Store apps using Apple's in-app purchase system the standard commission will be 26 per cent. For the vast majority of developers, including participants in selected Apple programs, the rate will be reduced to 15 per cent. This also applies to automatically renewing subscriptions after the first year. If an app uses alternative payment processing, the commission will be 20 per cent, and for participants in certain programs it will be reduced to 10 per cent. The situation is different again for apps that direct users via a link to an external website to make a purchase. Here Apple will set the commission at 15 per cent, with some developers eligible for a 10 per cent rate. Apps distributed through alternative stores or directly over the internet will be subject to a 5 per cent commission for base technologies. The new rules are intended to give developers more choice in how they sell their digital products in the EU.
Apple expands alternative distribution and introduces child protection
The new terms will also allow developers to combine Apple in-app purchases with alternative payment methods. Previously, that combination was not available in the European Union. Developers will be able to opt for Apple purchases, alternative payment processing, redirecting the user to a website, or a combination of several of those options. The chosen set of options must, however, be maintained for 12 months. Apple says this is intended to give users a more predictable and transparent experience. At the same time, the company will introduce additional safeguards for children and younger users. Apps in the Kids category will not be allowed to direct users to external sites to complete transactions. For users under 18, apps using alternative payments or redirecting to websites will be required to have a parental gate. This means a younger user will need a parent or guardian to be involved before making a purchase. Even stricter rules will apply to those under 13, as apps will not be allowed to redirect them to payment pages. Apple will also adapt these protections to EU countries where parental consent is required for certain digital activities of children over 13. The company will further expand the option to run alternative app stores and distribute apps over the web. That option will be available, among others, to publicly listed companies, firms backed by reputable venture capital funds, government institutions, educational organisations and non-profits. Despite the greater freedom, Apple will still require notarisation of apps distributed through alternative channels to reduce the risk of serious threats to users.
Apple has prepared a broad set of changes affecting apps in the European Union. The most important modifications include new commission rates, alternative payment methods and broader options for distributing apps outside the App Store. The company is also introducing additional safeguards to protect children from scams and unsafe payments. Developers can accept the new terms now, and the changes will take effect on 1 October.
source: apple
