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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 foundational technologies with a new 5 percent commission on in‑app digital transactions for apps distributed via the App Store. The company is also dropping the initial user-acquisition fee and the store services fee. Commissions for apps using alternative payment methods will also change. For App Store apps using Apple’s in‑app purchase system the base commission will be 26 percent. For the vast majority of developers, including participants in certain Apple programmes, the rate will be reduced to 15 percent. This also applies to auto-renewing subscriptions after the first year. If an app uses alternative payment processing, the commission will be 20 percent, and for participants in specified programmes it will be reduced to 10 percent. The situation is different for apps that direct the user by link to an external site to complete a purchase. Here Apple will set the commission at 15 percent, and selected developers will be able to use a 10 percent rate. Apps distributed through alternative stores or directly via the internet will be subject to the 5 percent commission for foundational 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 such combinations were not available in the European Union. Developers will be able to choose Apple purchases, alternative payment processing, redirecting the user to a website, or a combination of these options. The chosen set of options must, however, be maintained for 12 months. Apple says this will provide users with 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 able to direct users to external sites to complete transactions. For people under 18, apps using alternative payments or redirecting to websites will need to implement a parental gate. This means a younger user will require a parent’s or guardian’s involvement before making a purchase. Even stricter rules will apply to those under 13, as apps will not be allowed to redirect them to payment sites. 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 ability to run alternative app stores and to distribute apps over the web. This option will be available, among others, to public companies, firms backed by reputable venture capital funds, government bodies, educational institutions and non-profit organisations. Despite the greater freedom, Apple will still require notarisation of apps distributed via alternative channels to reduce the risk of serious threats to users.
Apple has prepared a broad package of changes relating to apps in the European Union. The most important modifications include new commissions, 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
