Apple has announced a significant simplification of its fee system in the European Union. The tech giant will charge a 5% fee for digital transactions in apps distributed outside the App Store (through alternative stores or websites). The new rules will take effect in the fall.
Apple has announced a significant simplification of its fee system in the European Union. The tech giant will charge a 5% fee for digital transactions in apps distributed outside the App Store (through alternative stores or websites). The new rules will take effect in the fall.
The move is aimed at resolving a long-running dispute with the European Commission over the implementation of the Digital Markets Act (DMA), Reuters reports . Regulators had previously criticized Apple's initial terms, including a controversial Core Technology Fee, saying they created artificial barriers and discouraged developers from using third-party distribution channels for iOS.
The basis of the updated system are the following changes, which will come into effect on October 1:
Instead of the old fees, a single fee for basic technologies of 5% of digital transactions is introduced;
for applications from the App Store that use third-party payment systems, the commission will be 20% (and for participants in the small business support program, it will decrease to 10%);
The initial acquisition fee and store services fee are completely abolished.
The European Commission welcomed Apple's concessions and said it would closely monitor their actual implementation.
The company also said it is introducing a single reporting standard for developers in the EU, similar to those already in place in Japan and Brazil. In those markets, local regulators have also forced Apple to abandon its monopoly model of up to 30% commission on in-app purchases of digital goods. Meanwhile, in the US, legal proceedings over Apple's allowed commissions are still ongoing.
