Apple

Apple Introduces New Fee Structure for EU Apps Linking to External Purchases

09 August 2024

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Paikan Begzad

Summary

In response to a recent EU ruling that found Apple’s App Store anti-steering policies in violation of the Digital Markets Act, Apple is making significant changes to its app store guidelines, particularly concerning how developers can link to external websites for alternative payment methods.

These new rules lift many of the previous restrictions Apple had imposed. Developers are now allowed to include dynamic URLs in their apps, which can lead users to various external sites, including those promoting alternative sales channels like other app marketplaces. The new policy also permits these links to open directly within the app via a modal web view, rather than forcing users to switch to an external browser like Safari.

Apple has also redesigned the user disclosure sheet, making it more user-friendly and providing an option for users to opt out of seeing these sheets when tapping on external purchase links in the future. While developers still need to implement this sheet manually, Apple has announced that a future iOS update will automate this process through the ExternalPurchaseCustomLink API.

A key part of this update is the introduction of a new fee structure for apps that utilize these external links. The new system comprises two fees: the Initial Acquisition Fee and the Store Services Fee. The Initial Acquisition Fee is a commission on sales of digital goods and services made by a new user within the first 12 months after downloading the app. The Store Services Fee applies to any purchases made within a 12-month period following the app’s installation, update, or reinstallation.

These fees apply regardless of the platform used for the purchase, meaning that even if a user downloads an app on an iPhone but completes the purchase on a different device, such as a Windows PC or an Android tablet, Apple will still claim its commission. However, existing subscriptions and renewals are exempt from these fees, provided the app was downloaded before the initial purchase.

The commission rates vary depending on the developer’s business terms. For developers operating under the EU alternative terms, the Initial Acquisition Fee is 5%, and the Store Services Fee is 10% (or 5% for members of the App Store Small Business Program or for qualifying subscription renewals). For those under standard terms, the Initial Acquisition Fee remains at 5%, but the Store Services Fee increases to 20% (or 7% for Small Business Program members or qualifying renewals).

Apple claims that this new fee structure will ultimately reduce costs for developers, especially those dealing with existing users, as previous fees could reach up to 17% plus the Core Technology Fee for linking out to alternative payment options.