Apple has recently updated its App Store guidelines to allow developers in Europe to add links for external payment options and purchases. These updates come into effect this fall, permitting developers to guide users towards their websites for transactions. This move, part of Apple’s broader compliance with European Union digital markets act, aims to foster competitiveness and fairness in the digital sector.
One significant change comes in the form of a “store services fee”, a commission levied on sales from external links. This fee would apply to purchases made within a year of the app’s installation, irrespective of the platform or device used for the transaction.
A differentiation in rates will apply based on exclusivity to the App Store with a 20% fee for exclusive apps and 10% for apps available elsewhere. Apple also intends to charge a 5% “initial acquisition fee” for digital products and services purchased within the first year of the app’s installation.
Altogether, Apple could potentially earn up to 25% in commission from purchases made within the first year of app installation.
Apple revises European App Store payments
However, developers affiliated with Apple’s small business program or those who charge for long-term subscription renewals could receive discounts on this commission. Consequently, the actual commission costs are variable and may be reduced.
However, these updates have received backlash from industry leaders. Epic Games CEO Tim Sweeney, for instance, has expressed concerns over the economic burden on developers. Critics argue that Apple’s application review system establishes an unfair monopoly, leading to a lack of competition and increasing distribution costs, affecting the profitability of developers.
There seems to be increasing speculation that Apple’s updates present an effort to avoid further intervention from the European Union, which accused Apple of infringing upon developer rights earlier this year. As a result, Apple’s policies and fee structures are currently under EU supervision.
