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Apple announced further changes to how apps operate in the European Union. The company developed them in cooperation with the European Commission in response to earlier concerns about rules for app sales and distribution. The new rules are also meant to simplify commercial terms, since developers operating in the EU will be covered by a single set of rules. Developers can already take advantage of the new terms, but they will take effect on October 1.
Apple changes commissions and payment rules in the App Store
One of the most important changes will be the introduction of a new commission model for digital goods and services sold through apps. Apple will replace the previous fee for core technologies with a new 5 percent commission on digital transactions in apps distributed through the App Store. The company is also eliminating the initial user acquisition fee and the App Store services fee. Commissions will also change for apps using alternative payment methods. For App Store apps that use Apple's in‑app purchase system, the base commission will be 26 percent. For the vast majority of developers, including participants in certain Apple programs, the rate will be reduced to 15 percent. This also applies to auto-renewable subscriptions after the first year. If an app uses alternative payment processing, the commission will be 20 percent, and for participants in certain programs it will be reduced to 10 percent. The situation is different for apps that send the user via a link to an external website to complete a purchase. Here Apple will set a commission of 15 percent, and selected developers will be able to take advantage of a 10 percent rate. Apps distributed through alternative stores or directly over the web will be subject to a 5 percent commission for core 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 adds protections for children
The new terms will also allow developers to combine Apple in-app purchases with alternative payment methods. Previously, such a combination was not available in the European Union. Developers will be able to choose Apple in-app purchases, alternative payment processing, redirecting users to a website, or a combination of these options. The selected set of options must be maintained for 12 months. Apple says this will 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 that use alternative payments or redirect to websites will have to include parental controls. That means a younger user will need a parent 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 pages. Apple will also adapt these safeguards to EU countries where parental consent is required for certain digital activities of children over 13. The company will also expand the ability to operate alternative app stores and to distribute apps over the internet. Among those able to use this option will be publicly traded companies, firms backed by reputable venture capital funds, government institutions, educational institutions, and non-profit organizations. Despite the greater freedom, Apple will still require notarization of apps distributed through alternative channels to reduce the risk of serious threats to users.
Apple has prepared a broad set of changes for 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 October 1.
source: Apple
