Apple has announced significant changes to its App Store policies in Europe, following pressure from the European Union regarding its compliance with the Digital Markets Act (DMA). The revisions come after the EU's preliminary findings in late June 2024, which suggested that Apple was not fully adhering to the DMA's rules, particularly concerning "steering" practices — the ability for developers to communicate offers to users outside of Apple's ecosystem.
Beginning this fall, developers will enjoy more freedom in promoting their offers without the need to follow Apple's previously mandated templates or wording. Developers can now link users to other marketplaces, websites, or apps, expanding their ability to direct users to alternative purchasing options. This shift also means that developers will no longer face constraints on the design of their promotional content within the app, with Apple allowing multiple links throughout the app that can be tapped, clicked, or scanned.
However, Apple has maintained that users will still receive a prompt indicating they are purchasing from the developer rather than Apple. Notably, this disclosure can now be disabled by the users themselves.
New Fee Structure
Alongside these changes, Apple has introduced a revised fee structure for developers who opt to use these external links. The previous reduced commission structure has been replaced with two new charges: the Initial Acquisition Fee and the Store Services Fee.
The Initial Acquisition Fee involves a 5% charge on any purchase made by a new app user within the first year of downloading the app, provided the app uses external links for purchasing. This fee reflects Apple's view that the App Store plays a crucial role in introducing users to apps.
The Store Services Fee, set at 10%, will apply to the sale of digital goods and services made on any platform for 12 months following an app installation that includes external purchasing links. This fee also resets if the app is reinstalled or updated.
Existing developers in the EU working under Apple's current terms can choose to adopt these new linking options, but they will face a higher Store Services Fee of 20%. Apple has introduced reduced rates for developers in its Small Business Program and for subscriptions beyond the first year, with the fee set at 5% for new developers and 7% for those already under the existing terms.
Apple has clarified that these fees do not apply to auto-renewals of subscriptions entered into previously, or to sales made through an alternative Payment Service Provider (PSP) or Apple's In-App Purchase system.
Implementation Timeline
The updated terms and documentation are now being shared with developers, but users will not see any changes until they are implemented in an iOS update scheduled for this fall. Apple has positioned these changes as beneficial to developers, offering lower charges and increased flexibility in linking practices.
These updates come as Apple continues to respond to the EU's findings on its compliance with the DMA's steering requirements. In addition to revising its terms, Apple has the opportunity to present its case against the EU's preliminary findings. Depending on the outcome, the European Commission will decide whether to impose fines on Apple, similar to the $2 billion penalty previously levied over alleged favoritism towards Apple Music over Spotify.
