In June of this year, the European Union recognized the current policies of the Apple App Store digital content store as anti-competitive and in violation of the region’s Digital Markets Act (DMA). Now the iPhone maker has announced a number of changes that should expand the capabilities of third-party application developers within the company’s ecosystem.
The updated App Store policies remove many of the restrictions Apple previously placed on how developers can link to external resources within their apps. At the same time, another payment structure is being introduced, specifically for cases of payments outside the App Store.
Previously, Apple had strict rules regarding how links must be placed within apps distributed through the App Store in the European Union. For example, the link should lead directly to the developers’ website, and clicking on it should not lead to identification of the user. This restriction prevented developers from directing users to a page where they could pay for selected services or renew their subscription to something, since this requires them to be identified.
New changes to the App Store policy remove all these restrictions, and developers can now place links in applications that lead anywhere, including to alternative payment systems and digital content stores. However, URLs can be used for identification if the developer does not subsequently use the information collected in this way for advertising. Previously, external links also had to take users to a web browser, such as Safari. Now developers can place URLs that will open directly inside the application.
Apple has also updated its privacy page to make it clearer. It now has a switch that allows you to cancel the warning about the possible disclosure of user data when following external links. For now, developers will have to integrate these changes into their products manually, but along with one of the future iOS updates, a special ExternalPurchaseCustomLink API will appear to automate the process.
Moreover, developers can take advantage of new opportunities within the EU without having to agree to alternative business terms. This means they can list apps on the App Store without paying fees to use Apple’s underlying technologies.
At the same time, Apple is introducing a new two-tier commission system for applications that link to external resources. Developers will have to pay an initial purchase fee and an App Store service fee. The initial acquisition fee is a commission on sales of digital goods and services that a new user purchases on any platform offered by the developer. It is valid for 12 months from the date of downloading the application, which contains external links. The Store Fee is a commission on sales of digital goods and services that also applies to purchases made on any of the available platforms. It is valid for 12 months from the date you download, update or reinstall any application. Essentially, this means that if the user continues to interact with the application, then the store service fee continues to be active. If the user deletes the application after 12 months from the date of installation, then Apple stops charging a commission.
The two-tier fee system means that during the first year, developers will have to pay an initial acquisition fee and a store service fee for each new user. After 12 months from the date of installation, the initial purchase fee ceases to be charged, and the store service fee remains as long as the user interacts with the application. This rule only applies to new downloads and purchases of digital goods and services. Already completed subscriptions and purchases will not be subject to additional fees.
The amount of commission fees will directly depend on the developer’s position. Those operating under the EU’s alternative business terms will still pay a fee to use Apple’s underlying technologies. The initial purchase fee will be 5% of the purchase price and the store service fee will be 10% or 5% for App Store Small Business Program members.
Those who offer their products on standard commercial terms will not pay fees for the use of core technologies. At the same time, the amount of commissions when clicking on external links will increase and amount to 5% for the initial purchase and 20% for store services (7% for participants in the App Store Small Business Program or when renewing a subscription after 12 months of using the application).
This creates a complex matrix of compliance and service costs that developers must carefully review and evaluate. The new conditions are already available to developers on the Apple website, where there is also a special calculator that allows you to estimate the amount of payments. Apple says the new fee structure will result in lower fees for all developers, regardless of the terms on which they do business. Previously, the company charged a commission of up to 17%, as well as a technology fee for the ability to connect an alternative payment system.