Apple Simplifies Commission Structure for EU Apps to Ease Disputes with European Union
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Apple on Tuesday announced a simplified commission structure for apps in the European Union in an effort to resolve its disagreements with the European Commission over the tech giant’s business terms. Under the new model, Apple will replace its per-install Core Technology Fee with a flat 5% commission on apps distributed outside the App Store or on the web. Apple also adjusted its rates for alternative payments and for its own in-app purchases, and made it easier for developers to open alternative app stores.
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The VergeApple is once again overhauling App Store rules in the European Union, which the company says will resolve its “disagreements with the Commission over business terms and alternative distribution.” As part of the changes, every developer that distributes apps will be moved to a single set of business terms, and digital transactions for apps distributed outside of the App Store will be subject to a Core Technology Commission fee of 5 percent.
EngadgetApple has been hit with another anticompetitive charge, but this time about how the company prompts users for data collection from apps. According to the Bundeskartellamt, or Germany's independent competition authority, Apple's pop-up prompts that let users either allow or deny an app developer to collect personal data tends to favor its own apps, instead of those created by third-party devs.
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Apple also noted that developers will be locked into their chosen payment options for 12 months, whether they use Apple’s in-app purchases, external payments, or a combination of the two.
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The VergeWith the new terms, developers can offer both in-app purchases and alternative payment systems in the EU. However, developers must maintain the payment options they choose for 12 months “to provide consistency and clarity for users,” Apple says.
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The company also carves out exceptions for developers allowed to use external links inside their apps, barring such links from apps in the Kids category for safety purposes. Users under 18 years old will also need parental approval before making purchases outside the App Store.
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The VergeApple’s updates also include new child safety features for the EU. Kids apps in the App Store can’t have links to websites for finishing transactions, and Apple won’t let App Store apps link out to websites for a purchase if a user is under 13 years old. Users under 18 will have to get permission from a parent or guardian when trying to make a purchase using an alternative payment method inside an App Store app.
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Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 TechCrunch In addition, apps using alternative payment processing will pay a 20% commission unless they’re in one of the special programs, in which case the rate will drop to 10%.
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02 Engadget The German regulatory authority's anticompetitive claim revolves around Apple's App Tracking Transparency (ATT), which was introduced in April 2021. The ATT framework prompts Apple users to decide if they want their data shared with an app they just opened. However, the Bundeskartellamt accused Apple of not applying a level playing field across apps, claiming "the wording, design and selection options of the request used for Apple's own offerings had the potential to encourage users to give their consent, whereas they had the potential to discourage consent for third-party apps."
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03 The Verge Apple squashes EU beef with new App Store rules Apple’s new EU App Store terms go into effect on October 1st.
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Sources (3)
- verge
- techcrunch
- engadget