The protracted negotiations between Apple and the European Commission have culminated in a significant agreement regarding App Store policies. Under new regulations, developers within the EU will now have greater flexibility in how they handle payments and will see a revision in the App Store commission fees. This new framework is set to come into effect on October 1.
Under the revised terms, developers can select between using Apple's In-App Purchase system, third-party payment processors, or directing users to external websites for transactions. The chosen payment method must be maintained for a minimum of 12 months and can include any combination of the three options.
There are specific guidelines in place to protect younger users. For instance, apps categorized under the Kids section are prohibited from linking to external sites to prevent potential scams targeting children. Furthermore, users under the age of 13 are not allowed to access external payment sites. Apps targeting users aged 13 to 17 can use third-party processors but must implement a parental approval mechanism before transactions can proceed.
The updated commission breakdown for the App Store is as follows:
- Apps using Apple In-App Purchase: The commission will be 26%. However, for most developers in specific programs, including the App Store Small Business Program, this rate drops to 15% after the first year for auto-renewing subscriptions.
- Apps utilizing alternative payment processing: The commission will be set at 20%, decreasing to 10% for eligible developers in the aforementioned programs.
- Apps linking out for purchases: A 15% commission will be applicable, with the reduced rate of 10% for qualifying developers.
- Apps via alternate app marketplaces or web: Apple will impose a Core Technology Commission of 5%.
Additionally, eligibility criteria have been broadened for companies aiming to run alternative app stores or distribute applications online. The requirements include:
- A moderate financial stability score from Dun & Bradstreet.
- Publicly traded status or ownership by a publicly traded company.
- Venture funding from a reputable investment firm.
- A financial audit completed by a licensed accountant.
- Status as a government entity, educational institution, or nonprofit organization.
For a detailed exploration of the new EU App Store rules, follow the provided source link. You can also read this overview.
Note: A recent ruling from a US judge has mandated Apple to revise its commission rates in the United States. More information on that can be found here.
Source
