Apple has announced changes to its business terms for apps in the European Union, following close collaboration with the European Commission.
In its press release, the company says “these changes resolve Apple’s disagreements with the Commission over business terms and alternative distribution,” and that they “also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms.” Developers can sign the new terms today, and changes will go into effect on October 1.
Unified Business Terms for Developers That Distribute Apps in the EU
Under this new model, Apple will charge a commission on the sale of digital goods and services. The Core Technology Fee, a per-install fee for developers that achieve extraordinary scale, will be replaced by the Core Technology Commission, a 5% commission on digital transactions in apps distributed outside the App Store. The new terms also eliminate the initial acquisition fee and store services fee.
In addition, Apple is adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps. Each of these commissions reflects the many ways Apple creates value for developers’ apps, whether they use the App Store and/or Apple In-App Purchase.
Under the new terms (per Apple’s press release):
- For App Store apps using Apple In-App Purchase, the commission will be 26 percent. For the vast majority of developers, including those in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, and for auto-renewing subscriptions after their first year, it will be 15 percent.
- For App Store apps using alternative payment processing, the commission will be 20 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
- For App Store apps that link out of the app to complete purchases, the commission will be 15 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
- For apps distributed via alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission.
Alternative Payments and Apple In-App Purchase
Apple In-App Purchase is the safest, most trusted way for users to purchase and download apps and make seamless and secure payments in those apps. Under the updated terms, developers can now offer Apple In-App Purchase alongside alternative payment options, which had not previously been permitted in the EU. This is subject to presentation requirements designed to give users a consistent, transparent experience.
To provide consistency and clarity for users, developers distributing apps in the EU will select their payment options — Apple In-App Purchase, alternative payment processing in their app, linking out to the web, or a combination — and must maintain those options for 12 months.
Child Safety Protections for Alternative Payments in the EU
The App Store is designed to be a safe and trusted place for everyone, particularly children. Apple has worked with the Commission to implement child safety measures for alternative payments similar to those already in place in other markets:
- Apps in the Kids category on the App Store will not include links to websites to complete transactions, to reduce the risk of fraud or scams targeting children.
- For users under 18 years old, all apps from the App Store that use alternative payment processing or link out to a website for transactions must include a parental gate that requires younger users to involve their parent or guardian before making a purchase.
- For users under 13 years old, apps from the App Store cannot link out to websites for transactions to protect against the risk of scams that target younger kids.
In EU member states that require parental consent for digital actions for children older than 13 years old, these protections will scale accordingly.
Expanded Eligibility to Operate Alternative App Marketplaces or Distribute via the Web
Apple is also expanding who is eligible to operate an alternative app marketplace or distribute apps via the web in the EU. Companies will now qualify if they:
- Meet a moderate financial-stability bar as scored by Dun & Bradstreet.
- Are publicly traded or owned by a publicly traded company.
- Have received venture funding from an established investment firm.
- Have completed a financial audit by a licensed accountant.
- Are a government entity, educational institution, or nonprofit.
Web distribution, which is available only in the EU, does not have a marketplace operator standing behind it or ongoing oversight like the kind Apple provides for the App Store. This means a bad actor distributing via the web can operate for a long time, harming users, before anyone catches it. In order to keep EU users as safe as possible, Apple will continue to require every alternatively distributed app to go through Notarization — a baseline review focused on basic functionality and protection from serious threats.
Apple is providing detailed resources to help developers understand the options now available for their apps in the EU, which they can access from the Apple Developer Support page.
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Article provided with permission from AppleWorld.Today